Governor Tiff Macklem shared his opening statement before the House of Commons standing committee discussing the recent policy announcement and the Bank’s Monetary Policy Report.

“In January, we raised our policy interest rate by 25 basis points to 4.50%. We also said that we expect to hold the policy rate at the current level while we assess the impact of eight consecutive interest rate increases since March 2022. This is a conditional pause—it is conditional on economic developments evolving broadly in line with our forecast.” Governor Macklem said.

“Since the last time we were here with you, we’ve seen some evidence that our interest rate increases are starting to slow demand and rebalance our overheated economy. With inflation above 6%, we are still a long way from the 2% target. But inflation is turning the corner. Monetary policy is working.”

Click here to read the full statement.