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Macklem Signals Canada Hiking Path Hinges on Investment

  • Governor vows to be deliberate, communicate clearly on rates
  • Markets expect first move to come at next meeting March 2
Tiff Macklem speaks at a Bank of Canada news conference in Ottawa on Oct. 27, 2021.
Tiff Macklem speaks at a Bank of Canada news conference in Ottawa on Oct. 27, 2021.Photographer: Adrian Wyld/Canadian Press/Bloomberg
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Bank of Canada Governor Tiff Macklem indicated the future path of interest-rate increases will depend in part on whether the nation’s businesses ramp up investment as the economy emerges from the pandemic.

In a speech two weeks after holding rates at emergency lows, Macklem promised Wednesday he would “act deliberately and communicate clearly” as he begins to raise borrowing costs. But he made clear that businesses have a role in determining how smooth the process will be.