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MNI BRIEF: BOC's Macklem Considering Another 50BP Rate Hike

(MNI) OTTAWA
OTTAWA (MNI)

Bank of Canada Governor Tiff Macklem told lawmakers Monday another half-point interest rate hike will be on the table in coming meetings.

“Looking ahead to our next decisions, I expect we will be considering taking another 50 basis point step,” Macklem said. Last Thursday he told reporters he wouldn't rule out going even further than 50bps if needed.

The Governor also acknowledged policy makers misread inflation, quipping that “it’s fair to say that team transitory has disbanded” and that “we got a lot of things right, we got some things wrong, and we are responding.” Canada may now be close to a peak in price gains, in particular because any easing in the surge in commodity prices should pull inflation down, he said.

While “getting a soft landing isn’t going to be easy," Macklem said, “even with growth moderating it’s pretty solid growth.” Keeping inflation expectations in check in the meantime is critical, he said.

MNI Ottawa Bureau | +1 613-314-9647 | greg.quinn@marketnews.com
MNI Ottawa Bureau | +1 613-314-9647 | greg.quinn@marketnews.com

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