Top Bank of Canada officials speak after holding interest rate at 5%
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Bank of Canada Governor Tiff Macklem and Senior Deputy Governor Carolyn Rogers held a news conference after the central bank decided to keep the key interest rate at 5%. Macklem stated that inflation in Canada is still too high, but there is evidence of it moving down with downward momentum. He also mentioned that developments in the United States can impact Canada, but the concern is more on service price inflation rather than goods price inflation. Rogers emphasized the diversity of views within the Bank of Canada's Governing Council and stated that it leads to robust conversations and better decisions. Macklem discussed the Canadian dollar, stating that the flexible exchange rate allows monetary policy to be geared to what's happening in Canada. He also mentioned that the bank is focused on core inflation and expects further gradual easing. The officials agreed to hold the policy rate and wanted to see sustained progress before making any changes. Macklem stated that a rate cut in June is within the realm of possibilities if progress continues. The article also includes information about the impact of U.S. inflation data on global markets and the decline in Treasury yields.
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