Bank of Canada (BoC) Governor Tiff Macklem touched on monetary policy during a luncheon on Monday. Further points are expected from the BoC Governor later in the day.
Key highlights
We continue to think that we don't need a large rise in the jobless rate to get inflation back to the target.
With inflation now much lower and the labor market rebalancing, we are starting to see evidence that wage growth is moderating.
Some people are finding it harder to get a job, particularly young people and newcomers to Canada.
Signs of financial stress are particularly evident among renters, who are often younger workers and newcomers.
We can't rule out new bumps but increasingly we look to be on our way to hitting the target.
There is room for the Canadian economy to grow and add jobs even as inflation moves closer to the 2% target.
In assessing implications of wage growth for labor costs and inflation, it is important to separate out wage gains that reflect productivity improvements.
The government has some room to slow the growth of non-permanent residents without tightening the labor market too much.
Going forward we will be looking for wage growth to moderate further.
There are a number of reasons to believe there could be more supply shocks going forward than we've seen over the last 25 years.
The BoC is looking for further moderation in wage gains.
It's reasonable to expect further cuts.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD keeps the red near 0.6200 after Chinese inflation data
AUD/USD keeps losses near the 0.6200 mark following mixed Australian data and as expected China's inflation numbers. The RBA's dovish shift and China's economic woes add to the weight on the Aussie as risk sentiment remains tepid. Fedspeak eyed.
USD/JPY: Bears attack 158.00 on strong Japanese wage growth data
USD/JPY drifts lower to test 158.00 early Thursday after data showed that base salaries for Japanese workers increased at the fastest pace in 32 years. The data backs the case for the BoJ to raise interest rates, which, along with the cautious market mood, benefits the safe-haven Yen and drags the pair away from a multi-month top.
Gold price retreats toward $2,650 despite risk aversion
Gold price is retreating from near a monthly high of $2,670 in Thursday's Asian trading. Resurgent haven demand for the US Dollar amid risk aversion weigh on Gold price even as US Treausry bond yields extend pullback. Focus shifts to Fedspeak amid holiday-thinned trading.
Has Bitcoin topped for the cycle? Here's what key metrics suggest
Bitcoin experienced a 2% decline on Wednesday as the cryptocurrency market grapples with recent losses. On-chain data has indicated a shift in the accumulation of the leading cryptocurrency, suggesting that holders are increasingly selling their assets.
Bitcoin edges below $96,000, wiping over leveraged traders
Bitcoin's price continues to edge lower, trading below the $96,000 level on Wednesday after declining more than 5% the previous day. The recent price decline has triggered a wave of liquidations across the crypto market, resulting in $694.11 million in total liquidations in the last 24 hours.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.