Central Banks
Bank of Canada Open to ‘More Normal’ Rate Hikes Amid Softer Data
- Macklem says tight labor market faces difficult adjustment
- Reiterates need to balance risks of over- and under-tightening
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The Bank of Canada left the door open to further slowing its pace of interest rate hikes, while warning the labor market faces an uneven adjustment to higher borrowing costs.
Governor Tiff Macklem, speaking at a press conference in Toronto, said the central bank could deliver another outsized increase to interest rates at its next decision or revert to a more traditional pacing.