- Some Governing Council members were more concerned about downside risks to inflation
- Concern about downside risks was linked to potential further weakening of economy and labor market
- Other members took the view that risks to inflation outlook were balanced
- Members discussed whether weakness in Canadian consumption and housing could partly be due to caution on the part of households
- Members felt consumers could be waiting for lower rates to make large purchases or enter the housing market
- Discussed scenario where economy could weaken and it might be appropriate to speed the pace of cuts
- Labor market softening, wage growth still elevated
- Housing market subdued
- No pre-determined path for rates, decisions to be made meeting-by-meeting
- Council puzzled by successive upside surprises in US household spending
- Felt low US saving rate was a possible indicator of weakness going forward
- In China, continued weakness in domestic demand had increased the downside risk to the growth outlook
- The Bank of Canada cut rates by 25 bps at the meeting
- Macklem signalled a willingness to cut more-quickly after the decision
- BOC deputy Nicolas Vincent speaks tomorrow
The comments on the US economy are more interesting than the ones on the Canadian outlook. I wonder if Macklem got the idea about the low savings rate from his trip to Jackson Hole.
