Premature to discuss a rate cut

Tiff Macklem, Governor of the Bank of Canada (BoC), explains the BoC decision to leave the interest rate unchanged at 5% after the January policy meeting and responds to questions from the press.

Key quotes

“Focus was very much on holding rates steady.”

“It’s premature to discuss a rate cut.”

“We need to see more progress before we discuss a possible rate cut.”

“As regards the future of quantitative tightening, we’ll take it one decision at a time.”

“Certainly not there yet when it comes to ending QT.”

“We’re not forecasting a deep recession, we don’t think we need one to get inflation back to target.”

Source: https://www.fxstreet.com/news/macklem-speech-premature-to-discuss-a-rate-cut-202401241544