Bank of Canada (BoC) Governor Tiff Macklem reiterated on Wednesday that there is a limit to how far the Canadian central bank can diverge on rates from the Federal Reserve (Fed), but they’re not close to that limit.
Key quotes
"For many of our citizens, this has been their first experience with high inflation, and it has been painful.”
"We need to meet people where they are and ensure they understand what we’re doing and why we’re doing it.”
"Recent history has been a stark reminder that inflation is our common enemy.”
“It's reasonable to expect more cuts on the horizon, but that the central bank is taking it "one meeting at a time."
“There are limits to that divergence, but we’re not close to that limit.”
Market reaction
At the time of writing, USD/CAD is trading 0.02% lower on the day to trade at 1.3720.
