MNI BRIEF: BOC's Macklem Sticks To Message About Rate Pause

Bank of Canada Governor Tiff Macklem Thursday stuck to his message about pausing interest rate hikes with a potential further increase if inflation causes more trouble.

“We’re determined to get inflation all the way back to the 2% target,” he said at a press conference speaking to reporters. While the last inflation report showed a surprise acceleration, Macklem didn't indicate that has changed his view that inflation will continue to slow in coming months.

“We’re using the pause to assess whether we’ve increased interest rates enough," he said. Several pressures must unwind for inflation to return to target and it's far too soon to think about a rate cut, Macklem said. (See: MNI INTERVIEW: BOC Hike More Likely Near-Term Risk: McNeil)