Macklem says BoC will have to decide whether to be patient or to raise rates further
By The Canadian Press on October 13, 2023.
OTTAWA – Bank of Canada Governor Tiff Macklem says the central bank will be deciding whether to exert patience at its next rate meeting or hike rates further. Macklem held a virtual roundtable with reporters from the sidelines of the annual International Monetary Fund meetings in Marrakech, Morocco on Friday morning. The governor says he expects the deliberations ahead of the central bank’s Oct. 25 rate decision to focus on whether to keep its key interest rate at five per cent and wait for past rate hikes to work through the economy – or raise rates further. Macklem says while demand in the economy is slowing, core inflation – which strips out price volatility – has remained sticky over the last six to eight months. The Bank of Canada held its key interest rate steady last month, but signalled it hasn’t closed the door to more rate hikes if needed. Canada’s annual inflation rate was four per cent in August, while an updated figure for September is expected to be released next week. This report by The Canadian Press was first published Oct. 13, 2023. 8-7
