More from BOC's Macklem
BOC Governor Macklem had no comments on the economy in his prepared remarks, but is sharing some of his views after his speech:
- Factors impacting inflation or more persistent than we previously thought
- Expects supply factors that are contributing to inflation, will work their way through
- Not seeing evidence that wages are becoming an independent source of inflation
- It may take a little longer than previously thought to work through the frictions in the labour market
- July and August inflation in line with Q3 forecast of 3.9%
- Supply and shipping bottlenecks could be more persistent than expected
- Factors influencing inflation are proving to be more complicated than we thought
- Recovery could take longer than expected
- Margin of error on inflation is diminished
- Track for GDP is probably a little bit slower than we estimated in July but we continue to expect a good rebound
The BOC is certainly going to taper at the end of the month. Central banks are now trying to put themselves in a place where they can at least credibly jawbone about hiking.
