- Analytics
- News and Tools
- Market News
- BoC’s Macklem: There is little downward momentum in underlying inflation
BoC’s Macklem: There is little downward momentum in underlying inflation
Tiff Macklem, Governor of the Bank of Canada mentioned on Thursday that monetary policy “may be sufficiently restrictive to restore price stability” but warned the Governing Council “is concerned about the persistence of underlying inflation.” On Wednesday, the BoC kept its key interest rate unchanged at 5%.
Speaking before the Calgary Chamber of Commerce, Macklem added that they are prepared to raise rates further, if they have to, in order to “restore price stability”. After reading his remarks, the Governor will take questions from reporters.
Key takeaways from the speech:
We’ve come a long way in the past year. Monetary policy is working, and inflation is coming down. But we still have some way to go to restore price stability. With past interest rate increases still working their way through the economy, monetary policy may be sufficiently restrictive to restore price stability. However, Governing Council is concerned about the persistence of underlying inflation. Inflation is still too high, and there is little downward momentum in underlying inflation.
We will be carefully assessing the balance between demand and supply and underlying inflation to gauge progress toward price stability. If we need to raise interest rates further to restore price stability, we are prepared to take further action. But we don’t want to raise our policy rate more than we have to.
We know higher interest rates are hitting some Canadians hard, and we don’t want this to be any harder than necessary. But letting too-high inflation persist would be worse. We are confident that 2% is the right target. The target is now in sight. We need to stay the course.
Market reaction
The USD/CAD remained relatively steady hovering around 1.3670, on its way to the highest daily close in months.
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.
Bank transfers
