Free Trial

MNI: BOC Says Canada Needs Higher Rates, CPI Well Above Target

(MNI) OTTAWA
OTTAWA (MNI)

Bank of Canada Governor Tiff Macklem said Thursday he needs to raise interest rates to pull down inflation that's well above his 2% target, and strength in job and housing markets will help deliver a soft landing.

"The Bank's number one priority is to get inflation back to target, and we are raising interest rates to make that happen," Macklem said in opening remarks for a press conference. "The economy can handle-- indeed needs-- higher interest rates." His remarks didn't mention potential for `forceful' action that have triggered some bets on a 75bp hike at the next meeting on July 13, following two straight 50bp increases.

MNI Ottawa Bureau | +1 613-314-9647 | greg.quinn@marketnews.com
MNI Ottawa Bureau | +1 613-314-9647 | greg.quinn@marketnews.com

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.