Bank of Canada Governor Macklem speaking in an FT Op-Ed:
Economic slack is still not absorbed but we are getting closer
Adding further stimulus through QE is no longer needed
Continue to believe slack remains in economy and therefore considerable monetary stimulus is still required
Supply disruptions appear lasting longer than the thought, energy price increases are adding to current inflation rates
Will adjust if we end up wrong about persistence of inflationary pressures, how much slack remains in economy
Forward guidance has been clear that we will not raise interest rates until economic slack is absorbed
There is little market reaction in the USDCAD to the comments as they are consistent with previous comments.
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