BoC's Kozicki says sometimes, monetary policy needs to be tightened even when the economy is weak

• Supply-side developments have become more important in the fight against inflation.

Kozicki's comments suggest a nuanced approach to monetary policy, indicating that the Bank of Canada may prioritize inflation control over economic weakness. This reinforces a potential hawkish stance, implying that any further rate adjustments could be on the table despite current economic conditions. Traders should consider how these remarks could impact CAD and fixed income markets, particularly if expectations shift toward tightening measures.