BOC's Macklem: Front-loading hikes will help cool domestic inflationary pressures

Eren Sengezer FXStreet

Following the Bank of Canada's (BOC) decision to hike the policy rate by 100 basis points to 2.5% in July, Governor Tiff Macklem is delivering his remarks on the policy outlook and responding to questions from the press.

Key takeaways

"Front-loading interest rate response will help cool domestic inflationary pressures."

"100-bp hike reflects concern that the risk that high inflation could become entrenched has gone up."

"Our aim is to get rates to the top-end or slightly above neutral range quickly."

"Economic slowdown is needed, there's lots of room to reduce job vacancies without materially reducing employment."

Market reaction

USD/CAD trades deep in negative territory following these comments and was last seen losing 0.5% on the day at 1.2955.

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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