Macklem Keeps Rate Options Open

Paraphrasing sections from Q&A below:

• Q: Is this a pivot from the BoC that very big or even big rate increases are coming to an end with a return to 25bps instead?
• A: We’ve signalled very clearly that we expect rates will need to rise further. That could be another larger than normal increase or a move to more normal 25bp increases. It’s going to depend on how the effects of higher interest rates are feeding through to slower demand, what we see in inflation and inflation expectations. To some extent, inflation will be affected by international factors and how global supply chain disruptions resolve.