BoC's Macklem: We are looking for continued easing of inflation to 2%
|Bank of Canada (BoC) Governor Tiff Macklem noted early Tuesday that the BoC will continue to carefully watch consumer conditions in Canada, reiterating that the BoC's timing and pace of rate cuts will be dependent on data.
Key highlights
With continued progress we've seen on inflation, it is reasonable to expect further cuts in our policy rate.
We will also be looking for continued easing in core inflation, which is still a little above 2%.
Bank of Canada is pleased to see inflation at 2%, now we need to stick the landing.
The timing and pace will be determined by incoming data and our assessment of what those data mean for future inflation.
The bank is scaling down work on retail central bank digital currency, shifting focus to broader payments system research and policy development.
There is a notable increase in financial stress among borrowers without a mortgage, mainly renters.
We will be closely watching consumer spending, as well as business hiring and investment.
I am concerned by the rising share of borrowers without a mortgage who carry a credit card balance of at least 90% of their credit limit.
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