May 26th, 2024

As inflation cools, Macklem says different countries will cut rates at own pace

By The Canadian Press on April 19, 2024.

WASHINGTON – Bank of Canada Governor Tiff Macklem says central banks will make monetary policy decisions geared toward their own economies, which means some countries may begin cutting interest rates before others.

Macklem made the comments while speaking to reporters on the sidelines of International Monetary Fund meetings in Washington, D.C. today.

The governor says that as inflation cools, different countries may progress at different speeds on monetary policy decisions.

Macklem contrasted weak economic conditions in Canada and the European Union with the roaring economy of the United States.

Forecasters are increasingly skeptical that the U.S. Federal Reserve will cut interest rates any time soon, given the economic strength and stickiness of inflation south of the border.

Meanwhile here in Canada, economists expect the Bank of Canada to begin lowering its key policy rate in June or July.

This report by The Canadian Press was first published April 19, 2024.

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