BOC’s Macklem Q&A: You can see some weakening of the labor force under the hood

  • We’ve seen inflationary pressures ease and we think they will continue to ease
  • We need to have conversations on improving our productivity
  • We’ve had exceptionally-strong supply shocks
  • We have too many small differences between provinces creating barriers
  • The economy has been changing rapidly
  • My intention today was to highlight the things we’re looking at in the labor market
  • We are looking for further moderation in wages; not all wage measures are equal, some help separate out wage gains related to productivity
  • I wanted to provide some info today on which productivity measures we’re watching most closely
  • If the economy evolves broadly as we expect, it is reasonable to expect further cuts
  • We’re going to be taking it one meeting at a time
  • Since we started raising rates about 50% of mortgages have renewed but the other 50% will have a bigger reset and that’s something that’s factoring into our monetary policy decisions
  • We don’t want to jeopardize the progress we’ve made on inflation

I spoke about the loonie and my aggressive outlook for it earlier today.

This article was written by Adam Button at www.forexlive.com. Source