Free Trial

MNI BRIEF: BOC Rate-Cut Talk Is Premature, Macklem Says


Bank of Canada Governor Tiff Macklem pushed back Wednesday against speculation he will cut interest rates later this year, pointing to the fact he just raised them and it will take time to see how an overheated economy responds.

"It’s really far too early to be talking about cuts," Macklem said at a press conference. "Inflation's still over 6%." Earlier the Bank hiked a quarter point to 4.5% and said it while it expects a pause it could hike again if inflation is stubborn. (See: MNI BOC WATCH: Macklem Hikes 25, Sees Pause If Growth On Track)

“We have a long way to go to get back to our 2% target, and we are resolute in our commitment to get all the way back to 2%,” he said.

MNI Ottawa Bureau | +1 613-314-9647 |
MNI Ottawa Bureau | +1 613-314-9647 |

To read the full story



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.