- Bank of Canada Governor Tiff Macklem said policymakers do not want to be late to hike interest rates if inflationary pressures prove stubborn, keeping a tightening option live.
- Macklem tied the hawkish caution to the Middle East conflict, which he said has increased the risk that inflation stays elevated and broadens.
- The Bank of Canada still does not want to hike borrowing costs if prices remain contained, leaving the policy path conditional on incoming inflation data.
Quotes
“policymakers don’t want to be late to hike interest rates should inflationary pressures prove to be stubborn”
“the conflict in the Middle East has increased the risk that inflation stays elevated and broadens”