Bank of Canada's Macklem: Rates to Remain Steady as Inflation Targets Approach

The Bank of Canada has diverged from the U.S. Federal Reserve by stating that interest rates will not be lowered anytime soon, despite the Fed suggesting easing could be on the horizon. The Canadian central bank has raised rates twice this year and has kept them unchanged since July. Inflation in Canada has remained above the bank's 2% target, but Governor Tiff Macklem believes it will gradually decline. While money markets expect rate cuts in 2024, Macklem stated that it is too early to discuss cutting rates and that the focus is on whether rates have been raised enough.