BOC Macklem is testifying before the House of Commons standing committee on finance:
- After inflation fell to 4.3% in March, says we see further declines ahead.
- we’ve seen a steady improvement in inflation and modest economic growth
- forecast inflation to be around 3% this summer
- To continue inflations decline will need Inflation expectations to come down further, services price inflation and wage growth needs to moderate, and corporate pricing behaviour has to normalize.
- If monetary policy is not restrictive enough to get us all the way back to the 2% target, we are prepared to raise the policy rate further to get there.
- Past policy rate increases are working their way through the economy and restraining demand.
- Households are slowing their spending, particularly on big-ticket items.
- As mortgages are renewed at higher rates, more households will feel the restraining effects of monetary policy.
- We expect it will take until the end of 2024 to get inflation all the way back to the 2% target.
- we continue to be more concerned about the upside risks.
You can watch his testimony by CLICKING HERE
The USDCDAD is trading above and below the 100 hour MA over the last 5 hourly bars (at 1.33789). On the topside is the 200 day MA near 1.3400. Move above is more bullish with the 200 hour MA at 1.34355 as the next upside target.
USDCAD trade between the 100 hour MA and 200 day MA