BOC Macklem:We are not forecasting a recession nor think we need one to get inflation down

  • We are not forecasting a deep recession
  • We don’t need to think that we need to get a recession to get inflation back to target
  • Inflation is still somewhat broad-based. That we become the persistence of underlying inflation.
  • It’s important that we don’t give Canadians a false sense of precision as regards to timing of a rate cut
  • Risk of a rate hike is not at 0%, but raising rates is not the base case
  • We are at a point where there is a lot of push and pull. There are mixed signals. When have confidence we will open the door toward easing policy.

This article was written by Greg Michalowski at www.forexlive.com. Source