BoC Governor Macklem says we are comfortable where we are in regards to interest rates
- All economies are facing similar shocks, but starting from different bases.
- Canadian economy is soft.
- There is slack in the labour market.
- Inflation is clearly above target.
- That is a dilemma for monetary policy.
- Reiterates BoC at bottom end of netural range (2.25-3.25%).
- About the right level to keep inflation contained.
- On forward guidance, we have to be humble, there are a lot of risks out there.
- If situation changes, we are prepared to take action.
- Trade continues to be a headwind.
- AI investment in US leads to headwinds and competitive pressure.
- It is an open question when AI driven disinflation kicks in.
- Short term saw an increase in computer prices.
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