BOC’s Macklem: If CAD appreciation persists, we’ll have more work to do on rates


  • There was broad consensus at the IMF meetings that inflation is the most-immediate threat to current and future prosperity
  • We will be ‘watching closely’ US economy, inflation and rates and factoring that in as we take decisions in Canada
  • Whatever Sept CPI shows, economy will still be in excess demand. Labour markets are tight and inflation is too high
  • There was a clear resolve to restore price stability at IMF

The market is pricing in a 78% chance of 50 bps from the BOC on October 26 with the remainder at 75 bps.



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