BoC’s Macklem sees inflation drifting higher as uncertainty lingers
The Bank of Canada Governor, Tiff Macklem, said that he expects inflation to “drift up a little higher in the coming months,” and commented that “A new era of uncertainty is not going away any time soon,” as he speaks in Halifax at the time of writing.
Bank of Canada Governor Tiff Macklem anticipates inflation to gradually increase in the upcoming months. He emphasizes that Canada is entering a new period of uncertainty that is unlikely to disappear anytime soon. When it comes to interest rates, the central question is whether to maintain or raise them. If the Bank of Canada raises rates slowly, it will need to increase policy tightening more quickly than if the decision had been made earlier.
Macklem also warns about the potential for persistent higher fuel margins, which could contribute to the persistence of headline inflation. The bank has downgraded its Q4 annualized growth forecast to 0.75%. The forecast now expects inflation to drift up a little higher in the coming months. The Bank of Canada is closely monitoring its inflation forecast, seeking to determine if the current interest rate is appropriate or if adjustments are needed.
Written by urgent.news from FXStreet's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
