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

(MNI) OTTAWA
OTTAWA (MNI)

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 | greg.quinn@marketnews.com
MNI Ottawa Bureau | +1 613-314-9647 | greg.quinn@marketnews.com

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