Far too early to be talking about interest rate cuts

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Following the Bank of Canada’s (BOC) decision to raise the policy rate by 25 basis points to 4.5%, BoC Governor Tiff Macklem delivers his remarks on the policy outlook and responds to questions from the press.

Key takeaways

“We will be looking for accumulation of evidence to raise rates again.”

“It is far too early to be talking about interest rate cuts.”

“Finance minister has told me the Bank of Canada will be allowed temporarily to retain earnings for the purpose of covering losses.”

“It’s not going to feel good when the economy stalls, but we do need this period of no growth.”