Gov Macklem Sees Need To Specify Will Move At Pre-Announced Dates

From the BoC press conference, paraphrased so not repeated exactly.

Q: Can you explain in more detail whether a 100bp hike means will need to raise rates to a lower terminal?

A: We took a big step today. We’ve put our policy in the middle of the long-run neutral range of 2-3%. We’ve indicated we think rates will need to rise further to cool demand and bring inflation back to target. By front-loading we are trying to avoid the need to increase rates even further, further down the road. This argues to get the policy rate up to or slightly above the top end of neutral, quickly. How high they need to go will depend on the evolution of the economy and dynamics and evolution of inflation. Getting inflation back to target is paramount and we’re going to take those decisions one at a time at our fixed announcement dates moving forward based on our assessment of the economy at the time and importantly on the outlook of inflation.