BOC's Macklem testifies before the Senate Committee on Banking, Trade and Commerce along with Deputy Gov. Rogers.
Macklem says:
- There is some uncertainty about how quickly inflation will come down
- WIth labor markets tightening and evidence of capacity pressures increasing, the BOC expects higher rates will be needed to bring inflation back to 2% target.
- We are confident inflation will come down
- Latest GDP reinforces the view that Q4 growth was strong
- Inflation to remain close to 5% in the first half of the year
- There is some evidence that Canadians have not be dipping into excess savings
The USDCAD has moved lower on the initial comments and trades away from the 200 our MA at 1.26703. The low for the day at 1.26496 and the 100 day MA at 1.26117 are the next targets on more weakness.
USDCAD falls back below the 200 hour MA
