Ottawa, March 12 (Reuters) – Canadian Bank announced the following text of the opening speech by Governor Tiff Macklem on Wednesday:
“Good morning. The Governor’s Assistant Carolyn Rogers will be happy to be here to discuss the policy decision.
“Today, we brought 25 basic points to 2.75% of the policy interest rate.
“The Canadian economy ended in good condition in 2024. Since last summer, 2% have been close to the goal. In the second half of last year, the second half of the last year has increased the cost and economic growth in our policy speed.
“Only in recent months, the widespread uncertainty of business and consumer confidence created by constantly changing the US tariff threats. This restricts home expenditures and employment plans.
“In this background and 2%, the Control Council with the nearest target, the political rate decided to reduce the 25 main points.
“Ahead, the US trade conflict can be increased to economic activity, increasing prices and inflation. The Board of Directors will continue to carefully in our proportions of politics
Inflation needs to evaluate the pressure from higher than higher costs and down pressures from higher than pressure and lower pressure.
“I am expanded over these basic considerations.
“Economic information shows that the January Purse Policy Report (MPR) ended the 2024th of the Canadian economy. Former interest rates, increased by 5.6% by continuing domestic demand in the fourth quarter. Overall, GDP
After increasing the above 2.2% in the third quarter, 2.6% increased in the fourth quarter. This growth is much stronger than we expect in the basis of information in January.
“In February, the increase in the end of the year was increased before the year. In November-January, the increase in the process of operation and unemployment was reduced to 6.6%.
“Inflation remains close to the 2% goal. The temporary GST / HST holiday has reduced some consumption prices, but inflation is a little more strong than expected at 1.9%. Inflation predicts about 2-% in March.
by the end of the tax break.
“Today, we have released new survey information on our hearing from business and households. Although new tariffs are very influential in economic activity, our surveys are already large enough for Canada-US trade relations and uncertainty threats
affecting the intention of work and consumer.
“Canadians are more concerned about work security and financial health as a result of trade voltage and intend to spend more money. Especially affordable employees
Industrial areas including production, mining and oil and gas.
“Enterprises, especially in the sectors and sectors, imported machines and equipment, especially in the manufacturing, production and sectors, rose. As a
The result of all this trade factors, many enterprises recruited and retrieved their investment plans.
“When our surveys and the higher expenses related to both uncertainty and tariffs have increased prices. At the same time, inflation expectations faced the possibility of higher prices for Canadians.
“In the first quarter of this year, the last turn of consumers and work intentions in domestic demand is expected to be translated into the first quarter of the domestic demand. At the same time, goods trade information offers enterprises on both sides
Canadian border tariffs have previously raised imports. As a result, Canadian exports and imports are expected to be stronger in the first quarter. However, the effect on exports seems to be larger, which should provide some
Offset for weak internal demand in the quarter.
“Of course, in exports, this tool is likely to weakness the upcoming weakness. If home and business expenditures remain disconnent, the combination of weak exports and soft domestic demand will take more economic activity in the second quarter.
“The tariffs of uncertainty and tariffs are harder to evaluate the tariffs in inflation. Homes and business expenses inclined to reduce the weight of those who suffer. New tariffs will damage and weaken our exports
Business investment. However, the costs also rise, and this will put pressure on inflation. A weaker canadian dollar and new revenge tariffs are more expensive imported. Enterprises also say uncertainty itself
puts new costs.
“This will be required for a while for higher expenses and higher demand effects and will affect the increase in prices.
“Wrap me.
“We put an end to a strong economic foot in 2024. But now we face a new crisis. The economic impact may be severe depending on the rank and term of new US tariffs.
“Monetary policy cannot replace the effects of a commercial war. What it can do and what it is to do is that the higher prices will be caused by the ongoing inflation. It will be assessed from a weak economy to evaluate the time and strength of inflation from a poor economy
pressure from higher costs.
“As always, the bank will guide our commitment to monetary policy and maintaining price stability over time.
“Thus, the Deputy Governor and I would be happy to get your questions.”
(Edit by David Ljunggren’s sheet, Mukherjee)
((Reuters Ottawa Bureau; David.ljunggren@tr.com))
Keywords: Canadian Cenbank / Macklem
