BOC Macklem: The 2% inflation target is now in sight

<p>The Bank of Canada's Macklem is on the wire saying:</p><ul><li>The time of rate announcements by the Bank of Canada will change to 9:45 AM ET from 10 AM, effective Jan 24, 2024; a press conference will follow every rate announcement.</li><li>Rate announcements by the Bank of Canada will be released 15 minutes earlier starting in 2024.</li><li>The deadline for the Bank of Canada's securities repo operation will be moved to 10:15 ET from 10 AM, effective Dec 18; the timing for the release of call for tenders will also change.</li><li>The 2% inflation target is now in sight, though not yet achieved; conditions increasingly seem in place to reach this target.</li><li>Further declines in inflation are likely to be gradual due to varying influences in the coming months.</li><li>The next two or three quarters are expected to be difficult for many, with a likely increase in the jobless rate.</li><li>It's still too early to consider cutting the policy rate; inflation has decreased but remains too high.</li><li>As economic growth slows, inflation pressures are expected to ease, though unexpected challenges may arise.</li><li>The consideration of rate cuts will occur once a clear path back to price stability is assured.</li><li>Economic growth is expected to remain weak into 2024, following a stall through mid-2023.</li><li>Shelter price inflation is expected to moderate over time, but the exact timing is uncertain.</li><li>2024 is anticipated to be a year of transition, leading to a more balanced economy after a period of weakness.</li><li>Growth and job creation are expected to pick up later in 2024, with inflation approaching the 2% target.</li><li>The next few years are anticipated to be less volatile than the recent past.</li><li>The appropriateness and duration of restrictive monetary policy will continue to be a subject of discussion.</li></ul><p>The USDCAD did break below the earlier floor at 1.3370 to 1.33776 (<a href="https://www.forexlive.com/technical-analysis/usdcad-bottoms-against-a-swing-area-target-imbalances-what-next-20231215/" target="_blank" rel="follow">see earlier video</a>). There is not a lot of support until 1.3319. Stay below 1.3377 keeps the sellers in firm control. </p>

This article was written by Greg Michalowski at www.forexlive.com.