- Analytics
- News and Tools
- Market News
- Bank of Canada’s Macklem: If inflationary pressures persist, we are prepared to raise rates further
Bank of Canada’s Macklem: If inflationary pressures persist, we are prepared to raise rates further
In his opening statement before the House of Commons Standing Committee on Finance, Tiff Macklem, Governor of the Bank of Canada said that they are prepared to raise interest rates further if inflationary pressures persist. Last week, the BoC kept interest rates unchanged. Macklem will answer questions from lawmakers.
Key takeaways from the speech:
With the economy expected to move into excess supply this year and with growth anticipated to be weak for the next few quarters, we think there’s more inflation relief in the pipeline. We expect inflation in Canada to ease gradually and return to our 2% target in 2025. But we’re worried that higher energy prices and persistence in underlying inflation are slowing progress.
Inflationary risks have increased since July
With clearer evidence that monetary policy is working, my colleagues on the Bank’s Governing Council and I judged last week that we could be patient and hold the policy rate at 5%. However, to be confident that our policy rate is high enough to get inflation back to 2%, we need to see more easing in our measures of core inflation.
We will continue to assess whether monetary policy is sufficiently restrictive to restore price stability, and we will monitor risks closely.
Our decision last week reflected our best efforts to balance the risks of over- and under-tightening. We don’t want to cool the economy more than necessary.
If inflationary pressures persist, we are prepared to raise our policy rate further to restore price stability.
Market reaction:
The USD/CAD held steady, trading near daily lows around 1.3820, holding firm onto daily losses. The pair is pulling back from one-year highs, primarily driven by a weaker US Dollar.
© 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
