The Bank of Canada Tiff Macklem is speaking and says:
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The bank will not revisit its 2% inflation target for the monetary policy framework review next year.
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Steep new U.S. tariffs and the unpredictability of U.S. policy have reduced economic efficiency and increased uncertainty.
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Headwinds that limit supply could mean more upward pressure on inflation going forward.
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By using scenarios, we were able to take a monetary policy decision that would fit a range of economic outcomes.
The Bank of Canada has a tough time with the whack-a-mole tariff policy complicating monetary policy. What we know is 2% inflation target remains. The bias is for higher inflation.
This article was written by Greg Michalowski at investinglive.com.