BoC Governor Macklem says they will take decisions one meeting at a time

• If the core inflation measures move higher, that is a sign inflation is spreading.
• Do not think there will be a rapid pass-through of higher energy prices.
• If energy prices come back down and there is more weakness in the economy, policy rate can be lowered.

This statement from BoC Governor Macklem reflects a cautious approach to monetary policy, indicating that decisions will be made incrementally based on evolving economic conditions. His comments suggest vigilance regarding core inflation, while expressing readiness to adjust rates if economic weakness persists and energy prices decrease. Traders should consider the potential implications for CAD and fixed income markets, as this stance may influence market expectations around future rate trajectories.