Free Trial

MNI: BOC Speech Drops Reference To Need For Rate Hike

(MNI) OTTAWA
Governor Macklem's speech reiterates the focus is shifting to how long to hold rates.

Bank of Canada Governor Tiff Macklem's speech Tuesday dropped language about the potential need for raising interest rates an 11th time while reiterating the debate is shifting to how long to hold the highest borrowing costs since 2001 with inflation seen on a bumpy road back to target.

"More time is needed to let monetary policy do its work to relieve underlying price pressures. With continued evidence that monetary policy is working, Governing Council’s discussion about future policy is shifting from whether monetary policy is restrictive enough to how long to maintain the current restrictive stance," Macklem said in the text of a speech he's giving in Montreal, which is followed by audience and media questions. "We want to see inflationary pressures continue to ease and clear downward momentum in underlying inflation."

Keep reading...Show less
444 words

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.

Bank of Canada Governor Tiff Macklem's speech Tuesday dropped language about the potential need for raising interest rates an 11th time while reiterating the debate is shifting to how long to hold the highest borrowing costs since 2001 with inflation seen on a bumpy road back to target.

"More time is needed to let monetary policy do its work to relieve underlying price pressures. With continued evidence that monetary policy is working, Governing Council’s discussion about future policy is shifting from whether monetary policy is restrictive enough to how long to maintain the current restrictive stance," Macklem said in the text of a speech he's giving in Montreal, which is followed by audience and media questions. "We want to see inflationary pressures continue to ease and clear downward momentum in underlying inflation."

Keep reading...Show less