Macklem Q&A: Need more progress on inflation before discussing cutting rates

  • Asked if anyone wanted to cut, said the focus was ‘very much on holding’
  • Repeats there was a ‘clear consensus’ to hold
  • Our latest forecasts have increased our confidence that we’ve raised rates enough
  • We’re concerned about persistence in underlying inflation
  • It’s premature to discuss reducing our policy rate
  • We need to see more progress on inflation before having a discussion about cutting rates
  • On QT, will take it one decision at a time; we’re still ‘some ways’ from too tight
  • We’re trying to balance the risks of too-high rates with too-low rates
  • We need to give monetary policy “a bit more time” to let it do its work

Watch it live here:

This article was written by Adam Button at Source