CANADA: BoC Presser Highlights: BoC Downplayed CPI Trim Strength
Q: There were some economists talking about a hold this month. What discussions and considerations went into this area?
Macklem: We said we would be considering further rate cuts and would be taking a gradual approach (it was more gradual as we cut 25bp instead of 50bp).
Rogers: On the core measures of inflation, we use them to gauge underlying inflation and the direction it’s going. There’s a whole basket of measures that we look at that are useful at different times. Core measures are a little bit above headline inflation. There are some particularities, particularly trim and how it’s calculated that led us to not put a lot of weight on what it suggests for underlying inflation at this point in time. The chart that is most useful for us on inflation pressures is the heat map (chart 9 in MPR).