Free Trial

MNI BRIEF: BOC Balancing Over- And Under-Tightening Risks

(MNI) OTTAWA
OTTAWA (MNI)

Bank of Canada Governor Tiff Macklem said Wednesday he's balancing the risks of going too far and not far enough with interest-rate hikes, and that he must focus on his single mandate of price stability.

"We need the economy to slow down to rebalance demand and supply and relieve price pressures," he said in a statement ahead of a press conference. "We are still far from that goal" of price stability, he said. Earlier the Bank hiked its key rate a less than expected 0.5% to 3.75%. Macklem also noted a rapid tightening of financial conditions worldwide, and said Canada's economy will move into excess supply in 2023.

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.