BOC's Macklem: Front-loading hikes will help cool domestic inflationary pressures
Following the Bank of Canada's (BOC) decision to hike the policy rate by 100 basis points to 2.5% in July, Governor Tiff Macklem is delivering his remarks on the policy outlook and responding to questions from the press.
Key takeaways
"Front-loading interest rate response will help cool domestic inflationary pressures."
"100-bp hike reflects concern that the risk that high inflation could become entrenched has gone up."
"Our aim is to get rates to the top-end or slightly above neutral range quickly."
"Economic slowdown is needed, there's lots of room to reduce job vacancies without materially reducing employment."
Market reaction
USD/CAD trades deep in negative territory following these comments and was last seen losing 0.5% on the day at 1.2955.
Reprinted from FXStreet_id，the copyright all reserved by the original author.
Disclaimer: The content above represents only the views of the author or guest. It does not represent any views or positions of FOLLOWME and does not mean that FOLLOWME agrees with its statement or description, nor does it constitute any investment advice. For all actions taken by visitors based on information provided by the FOLLOWME community, the community does not assume any form of liability unless otherwise expressly promised in writing.
FOLLOWME Trading Community Website: https://www.followme.com
Hot
No comment on record. Start new comment.