Macklem: BoC considered need for rates to stay higher longer

Tiff Macklem, the governor of the Bank of Canada, stated in her opening remarks before the House of Commons Standing Committee on Finance that the central bank has examined the necessity for rates to be higher for a longer period of time in order to bring inflation back to the target of 2%.

After official data revealed that Canada’s annual inflation rate had decreased to 4.3% in March from 5.2% in February, Macklem added that he anticipates prices to decrease even lower.

“Falling goods price inflation drove annual CPI inflation down to 4.3% in March, and we expect additional decreases moving forward. Macklem remarked to a legislative committee, “That’s wonderful news.

With all eyes on the US dollar as price corrects in a bear trend, with the focus being on 1.3406 reaching the micro trendline resistance and approaching the 38.2% Fibonacci retracement point close to 1.3430.

Markets have seen a move towards the targeted area and there are still prospects of the 38.2% Fibonacci that would be a firm test of the micro trendline.