BoC's Macklem: Today's decision consistent with deliberate approach, Omicron weighing on economy

Joel Frank Independent Analyst

BoC Governor Tiff Macklem, in his post-monetary policy meeting and Monetary Policy Report release press conference, said that Wednesday's decision to hold interest rates was consistent with the bank's deliberate approach, before adding that the spread of Omicron is weighing on the economy.

Additional Remarks:

"Reopening the economy has proven complicated."

"We want monetary policy to be a source of confidence, not uncertainty."

"We are going to learn more about Omicron in the coming weeks."

"Confident inflation will come down because we are seeing evidence global supply chain issues are starting to be resolved."

"Rising rates will dampen demand growth and ensure domestic sources of inflation do not build up."

"Inflation is uncomfortably high."

"Rate hikes won't be automatic... we will take decisions at each meeting."

"Won't say how fast or how far rates will be going up."

"We might take a few steps, then pause the rate hiking path and assess progress."

Author

Joel Frank

Independent Analyst

Joel Frank is an economics graduate from the University of Birmingham and has worked as a full-time financial market analyst since 2018, specialising in the coverage of how developments in the global economy impact financial asset

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