BOC’s Macklem: We are navigating carefully

Forex Short News

The Bank of Canada Governor holds a press conference and takes questions from reporters along with Senior Deputy Governor Carolyn Rogers.

Highlights:

  • We are navigating carefully
  • The Canadian economy started the year in a good place
  • In March, we said we would be less-forward looking
  • Much has happened since March but the situation is no less clear
  • We’re going to do as much as we can to support to the Canadian economy while maintaining our focus on price stability
  • My comment about ‘acting decisively’ isn’t a code word
  • Says he’s heading to IMF meetings soon and expects some clarity there

He repeated the ‘navigating carefully’ line after referring to his notes. That’s clearly a talking point but it’s not clear what he’s saying. I think it implied that rate cuts were still in play but they want to try and get some clarity on tariffs. I think it’s a mistake because the path of growth is undoubtedly down and they could quickly fall behind the curve.

Rogers:

  • We’re hoping for some clarity

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