BoC gov Macklem: If economy develops as expected, no new rate hikes needed

Reuters reported that Bank of Canada Governor Tiff Macklem said on Tuesday that no further rate hikes will be needed if, as expected, the economy stalls and inflation comes down.

Key comments

"If new data are broadly in line with our forecast and inflation comes down as predicted, then we won't need to raise rates further," Macklem said in a speech to financial analysts in Quebec City.

"Inflation is turning the corner. Monetary policy is working," Macklem said, adding that economic growth would be "close to zero" through the third quarter of this year.

USD/CAD update

We are headed for an inside day as the US Dollar picks up a bid in the aftermath of the Federal Reserve's chairman Jerome Powell's comments: