Canadian governor rules out early rate cuts

Bank of Canada governor Tiff Macklem has said he views rate cuts as a distant measure, not in immediate consideration.

If the economy evolves in line with projections, the central bank expects to hold the interest rate at the current level, “while it assesses the impact of the cumulative interest rate increases”, Reuters reported on January 25.

“As things start to get more back to normal, at some point, yes, we probably will be thinking about some modest cuts in interest rates,” Macklem said.