The USDCAD is tradin at 1.3711 at the start of the USDCAD
BOC Macklem:
- Interest rate decisions one meeting at a time. If the economy continues as expected and easing of inflation, you can expect more cuts
- Determined to get inflation back to 2% target
- The work is not done. See how things evolve.
- Will make decisions one meeting at a time depending on data
- We have come a long way with fight on inflation
- Economy has evolved broadly as we expected. That has increased our confidence that inflation will move gradually back toward a 2% target
- The timing of any further cuts is dependent on incoming data.
- We know there can be bumps along the way. There are risks.
- Our own forecasts has inflation moving gradually back toward our 2% target.
- There are limits to how far we can divert from us, and we are not close to those limits
- We are expecting population growth to slow. We have built in our forecasts. Population growth has eased employment pressures, but it also increase demand for housing.
- So far it is looking like a soft landing for the economy
- There is room for economy to grow faster than potential for a period..
- We are normalizing our balance sheet, but our policy is still restrictive.
- We need restrictive policy as inflation is still above target.
- We will get to a point where balance sheet is normalized
BOC Carolyn Rogers:
- It is clear there is some pent-up demand in the housing market. We’ll see how that goes.
- We always look on how decisions will impact Canadians and housing is an important part.
- The BOC is diverging from other countries because each economy is working at a bit differently
This article was written by Greg Michalowski at www.forexlive.com. Source