“Bank of Canada Governor Tiff Macklem has opened the door to accelerating interest rate cuts.”, — write: www.epravda.com.ua
Bank of Canada Governor Tiff Macklem has opened the door to accelerating interest rate cuts.
About this informs Financial Times.
In an interview with the newspaper, Macklem said that those who set rates are concerned about the state of the Canadian labor market and the possibility of lower oil prices, which could negatively affect the country’s economy.
“As you get closer to the target, your risk management calculus changes. You become more concerned about downside risks. And the labor market is pointing to some downside risks,” Macklem told the Financial Times.
After holding its key interest rate at 5%, its highest level in two decades, for a year, the Bank of Canada has cut it by a quarter point three times in a row since June, bringing it down 75 basis points to 4. 25% at the beginning of this month.
Headline inflation in Canada fell to a 40-month low of 2.5% in July.
Macklem said last week that while the bank sees growth picking up, there are some risks that could hamper the expected acceleration in growth.
Economic truth