MNI BRIEF: BOC Says CPI Fading Fast, Could Still Hike Again

Bank of Canada Governor Tiff Macklem said that Tuesday's inflation report shows price gains are fading quickly and more moderation is likely, while reiterating he's prepared to raise interest rates again.

"If monetary policy is not restrictive enough to get us all the way back to the 2% target, we are prepared to raise the policy rate further to get there," Macklem said in an opening statement to a House of Commons committee. Last week he held the key rate at 4.5% for a second meeting after eight prior increases, and most of his opening repeated his reasoning for that decision.

Noting the report inflation slowed to 4.3% in March, Macklem said "we are encouraged by that, but we are also seized with the importance of staying the course and restoring price stability for Canadians." (See: MNI INTERVIEW: BOC Seen Cutting Rate Around Yr-End: Ex Adviser)