Comments from Macklem in response to questions from reporters:

Picture of Tiff Macklem Oct 27, 2021
  • Inflation likely to move a bit higher late this year, nearing 5% before falling to around 2% by the end of 2022
  • We have never reopened an economy before
  • Strong demand plus bottlenecks has put considerable pressure on traded goods
  • Shift to buying services will take some pressure of goods prices
  • We don't need QE anymore, we're getting closer to a full recovery
  • Package of monetary policy tools have worked
  • Supply capacity of economy is more limited than we thought
  • Our assumption is that 20% of excess savings accumulated during pandemic will be spent, the rest will be used as savings and to pay down debt
  • We will soon get a sense of whether spending is higher or lower than assumptions

He has repeatedly highlighted that inflation is a global issue, which also trying to say the BOC has the power to bring inflation back to target.

With the press conference done, I can't say we learned anything new.