Canadians Will Have to Wait a Bit Longer for Interest Rate Drop: Bank of Canada Governor

Canadians will have to wait for interest rates to come down, despite the country heading in the right direction in the battle against inflation, according to Bank of Canada Governor Tiff Macklem. Mr. Macklem told a Senate committee that inflation was 2.9 percent in March – still higher than the target of two percent – and although it’s heading in the right direction, he cautioned against cutting the interest rate too soon. The Bank of Canada’s trend-setting interest rate is currently at 5 percent. “We don’t want to leave monetary policy this restrictive for longer than we need to, but if we lower our policy interest rate too early or cut too fast, we could jeopardize the progress we’ve made bringing inflation down,” he told senators....