BoC Governor Tiff Macklem said in a speech that the central bank is trying to “balance the risks of under- and over-tightening.” “The tightening phase will draw to a close,” he added. “We are getting closer, but we are not there yet.”
BoC is still “far from that goal” of ensuring “low, stable and predictable” inflation. “With inflation so far above our target, we are particularly concerned about the upside risks,” he added.
Macklem also said, “We expect growth will stall in the next few quarters—in other words, growth will be close to zero. But once we get through this slowdown, growth will pick up, our economy will grow solidly, and the benefits of low and predictable inflation will be restored.”
