Bank of Canada Stays On Hold Amid “Uneven” Inflation Progress
As had been almost universally-expected, the Bank of Canada left its benchmark overnight rate unchanged this morning, but language in Governor Macklem’s statement tilted in a slightly more hawkish direction than market participants had anticipated, helping to boost the exchange rate. In prepared remarks released ahead of the post-decision press conference, Governor Tiff Macklem said “Today’s decision reflects Governing Council’s assessment that a policy rate of 5 percent remains appropriate. It’s still too early to consider lowering the policy interest rate”. “Looking ahead, we continue to expect inflation will be close to 3 percent through the middle of the year...