Bank of Canada Governor Warns Government Spending Could Hamper Inflation Reduction Efforts
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Bank of Canada Governor Tiff Macklem said central bank could cut rates before inflation reaches 2% target, but it's still a ways off.
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Inflation outlook is mixed - higher rates slowing economy/inflation in some areas, but oil prices/shelter costs still rising.
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Macklem said housing affordability won't improve until Canada deals with shortage of homes.
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Macklem said past government spending hasn't fueled inflation, but future spending may work against monetary policy.
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Macklem warned government spending growing faster than supply could make it harder to reduce inflation.