Bank of Canada Governor: Too Early for Interest Rate Cuts

Tiff Macklem predicts weak economic growth into 2024, with a 'transition' year expected as higher interest rates slow the economy.

Bank of Canada Governor Tiff Macklem has indicated that it is too early to consider cutting interest rates, despite widespread predictions of cuts next year.
Macklem stated that until there is clear evidence that Canada is on a path back to 2% inflation, cuts are off the table.
He also noted that economic growth is expected to remain weak into 2024, with consumers likely to hold back spending, businesses to see weak demand, and employment growth to slow.
Macklem predicted that 2024 will be a 'transition' year as higher interest rates slow down the economy, paving the way for lower inflation.
He emphasized that the central bank will need to be nimble in the face of increased economic volatility.