MNI BRIEF: BOC Says Premature Rate Cut Could Be Costly

Bank of Canada Governor Tiff Macklem said Thursday it's "too early" to consider cutting interest rates though he could look at a move before inflation gets all the way back to the central bank's 2% target.

“We’re really not thinking about interest-rate cuts,” he said after a speech in Toronto. “The lesson from history is cutting prematurely, that’s going to end up being more costly”

“It doesn’t mean that you actually have to get all the way back before you start thinking about” a rate cut he said, adding it depends on whether there are signs durable price stability is being restored. (See: MNI INTERVIEW: BOC Has Done Enough To Slow Inflation-CD Howe)