Bank of Canada Senior Deputy Governor Carolyn Rogers It said Thursday that they are looking for more evidence that current interest rate levels are high enough. In a prepared speech he will deliver to the Manitoba Chambers of Commerce at approximately 18:55 GMT, he talks “about the factors behind high inflation and how we know inflation is falling.”
Key points
“Yesterday we decided to keep the official interest rate at its current level of 4.50%. We are also continuing with our policy of quantitative tightening.”
“However, it is a conditional pause. If economic developments develop according to our forecasts and inflation falls as quickly as predicted in the January Monetary Policy Report (IPM), we should not have to raise rates more. But if evidence accumulates to suggest that inflation may not fall in line with our forecasts, we are prepared to do more.”
” We will need to see more evidence to fully assess whether the monetary politics is restrictive enough to bring inflation back to 2%. For now, let me break down the latest developments and share some thoughts on what we’ve discussed and how we’re going to approach things in the future.”
“And with inflation still well above our target, we remain more concerned about upside risks.”
“The world’s major economies are highly interconnected, but while we always think globally, we have to act locally. We must tailor our policy to Canadian circumstances. AND monetary policy has to look to the future“.
“We are closely watching to see how events unfold. And we are committed to getting inflation back to 2% so Canadians can return to low, stable and predictable inflation with sustainable economic growth.”
Market reaction
USD/CAD erased the gains during the American session and is approaching the 1.3800 area. The loonie is one of the worst performing G10 currencies this Thursday.
Source: Fx Street

I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.