Central Banks
Bank of Canada Says Rates May Be ‘Restrictive Enough’
- ‘More downward pressure on inflation is in the pipeline’
- Excess demand ‘gone’, economy approaching balance: Macklem
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Bank of Canada Governor Tiff Macklem said policymakers may have done enough to tame inflation, reinforcing market and economist expectations that short-term rates have peaked.
In his first speech since leaving the bank’s overnight rate unchanged at 5% in October, Macklem said the economy is expected to remain weak for the next few quarters, which means “more downward pressure on inflation is in the pipeline.”