BoC's Macklem: BoC considered holding the overnight rate steady

Good morning. I’m pleased to be here with Senior Deputy Governor Carolyn Rogers to discuss today’s monetary policy decision. Today, we lowered the policy interest rate by 25 basis points, bringing it to 2.5%. Through the recent period of trade upheaval, Governing Council has been proceeding carefully, paying particular attention to the risks and uncertainties facing the Canadian economy. Three developments have shifted the balance of risks since our July decision. First, Canada’s labour market has softened further. Second, although there are still some mixed signals, on balance, recent data suggest the upward pressures on underlying inflation have diminished. Third, with the removal of most retaliatory tariffs by Canada, there is less upside risk to future inflation. Considerable uncertainty remains. But with a weaker economy and less upside risk to inflation, Governing Council judged that a reduction in the policy rate was appropriate to better balance the risks going forward. The Bank will continue to assess the risks, look over a shorter horizon than usual, and be ready to respond to new information. Macklem Says There Was a Clear Agreement To Lower Interest Rates Macklem Says Risks and Uncertainties for the Economy Have Changed Since July Bank Of Canada Governor Macklem Says Bank Will Focus On Shorter Time Horizon and Prepare To Respond To New Data BoC's Gov. Macklem: Cut appropriate with a weaker economy, less inflation risk.

BoC's Gov. Macklem: We're a long way from even contemplating QE. Bank of Canada's Macklem States No Recession Expected, Forecasts Around 1% Growth in Second Half of Year