MNI BRIEF: BOC Says It's Nearing End Of Rate Hikes

Bank of Canada Governor Tiff Macklem reiterated Wednesday the end of the rate hiking cycle is nearing but it will take time to slow inflation to target, without giving a specific clue on the size of the next interest rate move on Dec. 7.

"How much further will depend on how monetary policy is working to slow demand, how supply challenges are resolving and how inflation and inflation expectations are responding to this tightening cycle," Macklem said in an opening statement to the House of Commons finance committee. The remarks mirrored statements made following the last decision to hike 50bps to 3.75%, and economists are split on whether he will hike by 50 or 25 basis points next month.

"Inflation has come down in recent months, but we have yet to see a generalized decline in price pressures," Macklem said. "We are trying to balance the risks of under- and over-tightening." (See: Steady CPI Dents 50BP BOC Hike Case- Ex Adviser)