MNI BRIEF: BOC: Inflation Likely Peaked, Need Time To Hit Goal

Bank of Canada Governor Tiff Macklem said "we think inflation's peaked" and is "starting to come down" in a Twitter video posted Thursday a few hours after StatsCan reported that CPI gains edged down a notch to 6.8% in November.

"It's going to take some time to get inflation back to target," Macklem said in the video. He reiterated the Bank's forecast that inflation will slow to about 3% by the end of next year, adding "as new information comes in, our forecasts are probably going to change. But what's not going to change is our determination to get inflation back to the 2% target."

Canada's dollar was little changed in thin holiday trading after Statistics Canada's inflation report, which also showed sticky core prices. Macklem may halt rate hikes next month to avoid a painful recession, Canada's largest union leader recently told MNI. (See: MNI INTERVIEW: BOC Can Halt Rate Hikes Now: Union Leader)