BoC's Macklem: Cannot rely on global developments to bring down inflation

Eren Sengezer FXStreet

Bank of Canada (BoC) Governor Tiff Macklem responded to questions from the press following the bank's decision to raise the policy rate by 50 basis points to 3.75%.

Key takeaways

"We do expect rates will have to go up further, we will determine the pace depending on developments."

"We cannot rely on global developments to bring down inflation in Canada."

"We don't expect a severe economic contraction."

Market reaction

USD/CAD continues to trade in negative territory following the press conference and was last seen losing 0.35% on the day at 1.3560.

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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