Bank of Canada Governor Macklem Says Inflation Is Too High - TLT News | RalliesBank of Canada Governor Macklem Says Inflation Is Too High
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TLT• Macklem says inflation remains too high
- Bank of Canada Governor Macklem said inflation is too high and noted that inflation is very concentrated in gasoline and oil prices.
- Macklem said risks are shifting and the central bank is prepared to adjust monetary policy as needed.
- He said the bigger issue for inflation is what is going on in the Middle East, how long oil prices stay high and how high they go.
- "We have to keep our eye on inflation, it's running too high," Macklem said.
- He said where rates go from here will be guided by inflation forecasts and the risks around them.
- Macklem said recent bond rout shows more than one thing happening at once.
- He added that central banks' tolerance for higher inflation is limited.
- Macklem said the Bank of Canada is seeing some spillover of global bond yields into Canada and will take that into account.
- He said multiple rate increases could be needed if the bank felt inflation is a problem.
- Macklem also said that if monetary policy does not do what it needs to do to achieve its objectives, markets will reprice.
Rogers says recent moves reflect repricing of risk
- Bank of Canada Senior Deputy Governor Carolyn Rogers said monetary policy is never about one risk or one piece of data.
- Rogers said it is important to distinguish between volatility and dysfunction or instability.
- She said what is happening right now is a repricing of risk, not a situation where liquidity is drying up.
