Bank of Canada governor Macklem speaks after rate decision

·2-min read
FILE PHOTO: A sign is pictured outside the Bank of Canada building in Ottawa

TORONTO (Reuters) - Below are some key quotes from a news conference by Bank of Canada Governor Tiff Macklem on Wednesday after the central bank held interest rate steady.

MACKLEM ON LABOR MARKET INDICATORS

"I guess my message here is, I would discourage you from fixating on any one statistic. We really need to look at the overall health of the labor market."

"You want to look at both the unemployment and the employment rate. There are some other things, though - you want to look at full-time employment. What is the composition of employment? Full-time, part-time, self-employed, private sector, public sector? You want to look at different parts of the labour market."

"The labor utilization rate, that's a broader measure, it includes people who would like a job but aren't actively working. It also factors in how many hours people are working."

MACKLEM ON CANADIAN DOLLAR MOVING HIGHER

"In our projection we assume the Canadian dollar remains where it is, around 80 cents. If the Canadian dollar were to move higher, that would put additional competitive pressure on exporters, it would make imports more attractive, that could certainly take something off our projection and that's something we'd have to take into account."

MACKLEM ON WAGE GROWTH

"Wages are really quite subdued. If we did see wage growth running well ahead of productivity that would be a sign of concern, that would be a sign of more broad-based inflation, so far we're not seeing that."

MACKLEM ON OUTLOOK

"Our outlook is not really that different from the one we put out in April. Of course we received a lot of new information, there are some differences, but if you step back the outlook is not that different from April."

MACKLEM ON ECONOMIC SLACK AND INFLATION

"There's still a considerable amount of slack in the economy and that will put downward pressure on inflation. It is putting downward pressure on inflation and that will continue until the outlook gap is closed... No matter how you look at it, there's still a considerable amount of slack in the economy. That's putting downward pressure on inflation. So as those temporary factors wane, inflation will come down."

MACKLEM ON HOUSING MARKET MODERATION

"We've already seen some moderation in housing activity. The levels remain quite elevated, but we've already seen some moderation. We do expect to see continued gradual moderation... That moderation could be faster than we've projected."

(Reporting by Steve Scherer, Moira Warburton and Allison Martell; Compiled by Denny Thomas)

Our goal is to create a safe and engaging place for users to connect over interests and passions. In order to improve our community experience, we are temporarily suspending article commenting