BoC’s Macklem: We don’t have to do what the Fed does

Bank of Canada (BoC) Governor Tiff Macklem hit newswires late Wednesday, reiterating that the BoC isn’t beholden to following the Federal Reserve’s (Fed) playbook as the two central banks grapple with slightly different economic situations.

Key highlights

• BoC is getting close to being able to cut rates.
• GDP growth is expected to be 1.5% in 2024, 2.0% in 2025 and 2026.
• Data since January has increased our confidence that inflation will continue to come back down.
• BoC expected core inflation to continue to ease gradually.
• Growth in the Canadian economy appears to be picking up.
• Monetary policy appears to be working.
• BoC does not have to do whatever the Fed does.