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MNI BRIEF: BOC Says Can Be Forceful If Needed On Rate Hikes

(MNI) Ottawa
OTTAWA (MNI)

Bank of Canada Governor Tiff Macklem on Thursday reiterated policymakers can act forcefully if needed to bring inflation back to target, and said Canadians should expect a rising path of borrowing costs.

Meeting that goal will be more difficult if price expectations ramp up, he said at a press conference. He also reiterated recent comments by Deputy Paul Beaudry that it's more likely now that rates will have to rise above neutral, which the Bank has estimated in a 2%-3% range. A big consideration for potentially hiking more than 50bp is the inflation outlook and how soon prices are moving back towards the 2% target, he said.

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Bank of Canada Governor Tiff Macklem on Thursday reiterated policymakers can act forcefully if needed to bring inflation back to target, and said Canadians should expect a rising path of borrowing costs.

Meeting that goal will be more difficult if price expectations ramp up, he said at a press conference. He also reiterated recent comments by Deputy Paul Beaudry that it's more likely now that rates will have to rise above neutral, which the Bank has estimated in a 2%-3% range. A big consideration for potentially hiking more than 50bp is the inflation outlook and how soon prices are moving back towards the 2% target, he said.