Bank of Canada's Macklem says 'too early' to consider rate cuts
BNN Bloomberg
The Bank of Canada’s top official said policymakers will consider cutting interest rates when inflation is “clearly” on a path to the 2 per cent target, but added that it’s still “too early.”
In a speech Friday, Bank of Canada Governor Tiff Macklem said that once officials are assured that price pressures are on a sustained downward track, they “will be considering whether and when we can lower our policy rate.”
“I know it is tempting to rush ahead to that discussion. But it’s still too early to consider cutting our policy rate,” Macklem said in Toronto.
Answering questions from reporters after the speech, Macklem reiterated that governing council is still prepared to hike borrowing costs further if needed, but noted that officials increasingly view interest rates as high enough to bring inflation to heel.
