BoC’s Macklem: Inflation is clearly above target

Speaking at a policy panel at the European Central Bank’s (ECB) Forum on Central Banking on Wednesday, Bank of Canada (BoC) Governor Tiff Macklem said that Canada’s economy remains soft, while inflation is still running clearly above target.

Key takeaways:

In Canada, the economy is soft.

Inflation clearly above target.

We are at the bottom end of neutral range, about the right level to keep inflation contained.

We’ve got to be humble amid uncertainty.

If situation changes, we are prepared to take action.”

AI investment in the US leads to headwinds and competitive pressure.

Open question when AI-driven disinflation kicks in.

In the short term, we saw an increase in computer prices.