Bank of Canada Governor Macklem answers questions after BOC rate decision. What are the implications?
USD/CAD — All Desk Targets
| Firm | Stance | YE 2026 |
|---|---|---|
Rabobank | Bullish | 1.36 |
ING | Bearish | 1.42 |
MUFG | Bullish | 1.34 |
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Bank of Canada Governor Tiff Macklem commented on inflation risks and the outlook for monetary policy following the BOC’s rate decision. His comments could impact the value of the CAD. Inflation is too high. Inflation is very concentrated in gasoline and oil prices. Risks are shi
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4 itemsBank of Canada head Macklem warns consecutive rate hikes possible if oil prices stay high
The desk interprets Governor Tiff Macklem's recent comments as a significant shift towards a more hawkish stance for the Bank of Canada, particularly in light of rising oil prices potentially driving broader inflation. Per the full note [source], Macklem indicated that sustained high oil prices could necessitate consecutive interest rate hikes, a marked change from the previous easing bias. Current CPI inflation has risen to 2.4%, with projections suggesting a peak of around 3% in April, reinforcing the urgency of the central bank's monitoring of inflationary pressures. This shift aligns with our consensus target of 1.075 for CAD/USD, reflecting a cautious yet vigilant approach to monetary policy amidst global uncertainties.
BOC's Macklem: There could be a need to raise the policy rate further
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