Macklem on growth, inflation and future rate moves
Bank of Canada Governor Tiff Macklem says Q2 is looking pretty solid, and the bank will be assessing how sustainable the pick-up is.
Macklem says, “We do think it is sustainable.”
He says if oil prices do once again rise and feed into inflation, he expects to need consecutive rate hikes to keep inflation under control.
Macklem says if oil prices go higher and remain higher, there may well still be a need for consecutive hikes; he says this is not the bank’s base case.
He says there are questions about how sustainable the recent pick-up in growth is.
“We’re going to take our decisions one at a time,” Macklem says.
Macklem says C$ weakness has not been a major factor in rate decisions.
Bank of Canada Senior Deputy Governor Carolyn Rogers says the condition of condo markets in big cities doesn’t have a big effect on monetary policy decisions.
Macklem says he would not want to respond to a spike in inflation caused by rising oil prices that then came down.
Rogers says the housing affordability problem is dampening the effects that a rate decrease might otherwise have.
