Tiff Macklem, Governor of the Bank of Canada (BoC)explains the BoC’s decision to lower the interest rate by 25 basis points to 4.75% after the June policy meeting and answers questions from the press.
Key statements
“We don’t need to move in lockstep with the Federal Reserve.”
“There are limits to how much we can deviate from the US and we are nowhere near those limits.”
“So far, it looks like a soft landing for the economy.”
“There is scope for the economy to grow faster than its potential over a period.”
“We still need a restrictive monetary policy.”
“Interest rates will not return to levels as low as before the Covid pandemic.”
Market reaction
USD/CAD continues to trade in positive territory around 1.3720 following these comments.
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.
