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Very Safe To Say Won't Lower Rates At Pace That Hiked Them - Macklem

CANADA
Paraphrasing questions from the BoC press conference
  • Q: You have policy decisions every six to seven weeks and a time will come when it makes sense to cut, how might you think about the frequency of rate cuts?
  • A: You’re getting a little ahead of yourself here. When we get to that point we’ll have more to say. It’s very safe to say we’re not going to be lowering rates at the pace that we raised them.
  • Q: Importance of forward guidance. What is your sense of how much forward guidance you’ll provide before you actually move rates or would you get straight to cutting?
  • A: One of the advantages of putting out our own forecasts or near-term updates (like today) is that we’re very clear about how things are evolving and what we’re watching. As the data comes out, everyone will have a sense of how it compares. Even if we’re not out there giving new assessments, the market and Canadians will see how things are evolving. We’re not giving forward guidance on our forward guidance. It’s fair to say that in giving indications of where we think things are headed on inflation rates, we want to give Canadians as much information as we have but don’t want to give a sense of false precision. We’ve seen progress but we need to see more progress.
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Paraphrasing questions from the BoC press conference
  • Q: You have policy decisions every six to seven weeks and a time will come when it makes sense to cut, how might you think about the frequency of rate cuts?
  • A: You’re getting a little ahead of yourself here. When we get to that point we’ll have more to say. It’s very safe to say we’re not going to be lowering rates at the pace that we raised them.
  • Q: Importance of forward guidance. What is your sense of how much forward guidance you’ll provide before you actually move rates or would you get straight to cutting?
  • A: One of the advantages of putting out our own forecasts or near-term updates (like today) is that we’re very clear about how things are evolving and what we’re watching. As the data comes out, everyone will have a sense of how it compares. Even if we’re not out there giving new assessments, the market and Canadians will see how things are evolving. We’re not giving forward guidance on our forward guidance. It’s fair to say that in giving indications of where we think things are headed on inflation rates, we want to give Canadians as much information as we have but don’t want to give a sense of false precision. We’ve seen progress but we need to see more progress.