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MNI BOC WATCH: Macklem Still Looks To Hike, Wants Slower Core

(MNI) OTTAWA
Inflation outlook remains risky amid strong gains for wages and housing.

The Bank of Canada remains prepared to raise interest rates again because the economic slowdown may not do enough to subdue inflation, while officials left borrowing costs at the highest since 2001 for a third straight meeting Wednesday.

"Governing Council is still concerned about risks to the outlook for inflation and remains prepared to raise the policy rate further if needed," according to the statement coming in at just 525 words, among the shorter ones in recent memory. "Governing Council wants to see further and sustained easing in core inflation." All 20 economists surveyed by MNI predicted the 5% benchmark would remain in place. 

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The Bank of Canada remains prepared to raise interest rates again because the economic slowdown may not do enough to subdue inflation, while officials left borrowing costs at the highest since 2001 for a third straight meeting Wednesday.

"Governing Council is still concerned about risks to the outlook for inflation and remains prepared to raise the policy rate further if needed," according to the statement coming in at just 525 words, among the shorter ones in recent memory. "Governing Council wants to see further and sustained easing in core inflation." All 20 economists surveyed by MNI predicted the 5% benchmark would remain in place. 

Keep reading...Show less