September 07, 2023 17:55 GMT
BOC Says Target In Sight But Remains Prepared To Hike
- The Bank continues to balance the risks of under- and over-tightening, using softer language than yesterday's rate decision.
- While Macklem said the 2% inflation target is in sight, the Bank remains concerned that progress has slowed.
- The Bank is waiting for evidence that softening demand will translate to lower inflationary pressure to restore price stability.
- The Bank said there is clearer evidence of higher rates moderating demand, particularly in interest sensitive housing and consumer spending.
- Macklem affirmed the need for inflation to be anchored at 2%; notes there will be a 2026 review of the monetary policy framework. The comment comes after a week of politicians complaining about the Bank's hiking campaign.
- Macklem will take questions after speech.