Bank of Canada Governor Tiff Macklem on Wednesday said he was focused on whether interest rates would need to go higher and was not even considering a cut, pushing back against traders betting that the central bank will move lower as soon as October.
Macklem made his remarks in an interview with Reuters after earlier announcing a rate hike and saying the central bank would pause to see how the economy was reacting to tightening.
The announced pause hardened bets for a rate cut. Before the rate decision, money markets had been pricing in about 40 basis points of easing in the second half of the year. They now see nearly 50 basis points of cuts….