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Macklem - June Cut Within Realm of Possibilities

CANADA
  • Q: Is the door open to a rate cut in June?
  • Macklem: Yes, it’s within the realm of possibilities. We are encouraged by what we’ve seen since January. Our indicators aren’t all progressing at the same speed but are moving in the right direction. Core inflation has come down and 3-mth measures suggests there is downward momentum. Yes, shelter price inflation is still high and there are certainly some things that are supporting inflation, but things are moving in the right direction. We’re encouraged by that progress and we need to see that progress continue. If things evolve broadly in line with our published outlook, we will be becoming more confident that we’re clearly on a path to 2% inflation and it will be appropriate to cut our interest rate.
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  • Q: Is the door open to a rate cut in June?
  • Macklem: Yes, it’s within the realm of possibilities. We are encouraged by what we’ve seen since January. Our indicators aren’t all progressing at the same speed but are moving in the right direction. Core inflation has come down and 3-mth measures suggests there is downward momentum. Yes, shelter price inflation is still high and there are certainly some things that are supporting inflation, but things are moving in the right direction. We’re encouraged by that progress and we need to see that progress continue. If things evolve broadly in line with our published outlook, we will be becoming more confident that we’re clearly on a path to 2% inflation and it will be appropriate to cut our interest rate.