BoC Governor Macklem says we are comfortable where we are in regards to interest rates

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ECB President Lagarde says the risks to the economy are more balanced than they were a few weeks ago.

Iran's Minister of Agricultural Jihad said no obligation to source essential goods from the US; open to using blocked assets for imports, Mehr reports

BoC Governor Macklem says we are comfortable where we are in regards to interest rates

BoE Governor Bailey says we have a softening economy and labour market and was the reason to not raise rates; focused on the risks of the pass-through of the energy crisis

Fed Chair Warsh says must think about a new conduct for monetary policy and we'll be charting a new course so the Fed can make better decisions

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  • 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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