MNI BRIEF: BOC Says Premature To Discuss Rate Cuts

Bank of Canada Governor Tiff Macklem told reporters Wednesday that officials didn't actively discuss the potential for cutting interest rates, because the focus of their decision to hold borrowing costs was on inflation that remains elevated.

“The focus across the council was very much on holding,” Macklem said, and there was a clear consensus that “it’s premature to be discussing cutting our policy rate.”

Macklem also reiterated a view that he needs clear evidence price stability is being restored before a policy shift, and asked directly about the timing of a cut he said “it’s important that we don’t give Canadians a false sense of precision.” (MNI INTERVIEW: BOC Keeping 2024 Policy Restrictive- CD Howe)