BoC's Macklem Warns of Spillover from Global Bond Yields Amid High Inflation Concerns

Bank of Canada Governor Tiff Macklem stated that the bank is observing some spillover from global bond yields into Canada, which they will take into account. He also emphasized that inflation remains too high in the country.

Macklem noted that inflation is heavily concentrated in gasoline and oil prices, with no clear end to this trend in sight.

He highlighted that risks are shifting, and the bank is prepared to adjust monetary policy as needed to address these changes.

Elevated energy prices pose a significant inflation risk for Canada, according to Macklem. He stated that any future interest rate decisions will be guided by the bank's inflation forecasts and associated risks.