FCC's Chief Economist doesn't expect to see much movement in interest rates in 2023

We can expect to see some key numbers coming out tomorrow (Tuesday) on inflation for the month of December in Canada.

J.P. Gervais, the Chief Economist for Farm Credit Canada says the hope is that it will be coming down, and may start to plateau the cycle of higher interest rates.

"We have a big, big, critical data release tomorrow on inflation for the month of December in Canada. The hope is that this will be coming down slightly, because then that's one critical data point that would actually start, perhaps to plateau the cycle of higher interest rates."

There's been a lot of discussion around the idea of a recession. 

Gervais says he doesn't spend too much time thinking about if we'll see a recession, adding that if we do, it will be different than before.

"Inflation is so high that the bank (Bank of Canada) will want to avoid any type of letting go too soon in terms of interest rates. Even if the economy slips and falls a little bit, then I do think that interest rates will plateau."