More from Bank of Canada's Macklem:

  • Rates unlikely to go back down to pre-Covid levels
  • Reiterates that even when we start reducing interest rates, it is likely to be a pretty gradual path
  • reiterates that the central bank could start cutting rates before inflation hits 2%. Sites importance of seeing a sustainable decline in inflation
  • If a federal carbon tax were to be eliminated, inflation would drop for one year and then go back up to where it otherwise would have been
  • If we cut interest rates and that begins for weaken the Canadian dollar, that is something you take into account with how much you need to reduce interest rates.

See technical video on the USDCAD HERE