MNI: Macklem Says Canada Turning Corner On Inflation
Bank of Canada Governor Tiff Macklem told reporters Wednesday that "we are turning the corner on inflation" and time is needed to pause and assess the drag from raising interest rates by 425 basis points.
"We have raised rates rapidly, and now it's time to pause and assess whether monetary policy is sufficiently restrictive to bring inflation back to the 2% target," Macklem said in opening remarks for a press conference after hiking a quarter point to 4.25%.
Macklem also reiterated the rate decision earlier today, saying if inflation remains stubborn he can tighten again. "To be clear, this is a conditional pause," he said, adding he's balancing risks of over- and under-tightening.