MNI BRIEF: BOC Sees More Interest-Rate Cuts If Inflation Moves As Expected

Bank of Canada Governor Tiff Macklem Monday affirmed his view that if inflation continues to make progress as officials expect, more interest-rate cuts are warranted after the first reduction in four years earlier this month.

“How many rate cuts this year? We’re just going to have to see,” he said at a press conference following a speech in Winnipeg, Manitoba. He also affirmed officials are on a meeting-by-meeting approach, as opposed to any planned schedule of cuts, and he's aware that cutting quickly could threaten hard-won inflation relief. (See: MNI INTERVIEW: BOC To Skip Cuts At 2 Of 4 Meets This Year- ATB's Parsons) Statistics Canada reports inflation Tuesday and economists predict a modest further slowing from the last reading, a three-year low of 2.7%.