BOC's Macklem: We are seeing clear evidence that higher rates are working

<ul><li>The exchange rate is part of how monetary policy works</li><li>Normally large rate hikes boost the currency but because the US is also hiking, the currency has been relatively stable</li><li>We don't target the exchange rate but we take it into account</li><li>We are seeing clear evidence that higher rates are working</li><li>We left the door open to higher interest rates, if needed</li><li>We need to see clear downward momentum in core inflation</li><li>There could certainly be two or three quarters of negative growth</li><li>A path to a soft landing in Canada is narrower vs USA</li><li>Highlights the difference between US and Canadian mortgage markets</li><li>Rogers: Relative to interest rates, we're not seeing the drop in housing prices we'd expect</li><li>Rogers: Canada continues to suffer from a lack of housing supply</li><li>Rogers: We're paying very close attention to the mortgage-renewal cycle</li><li>Rogers: Will look more at housing in November Financial System Review</li><li>Government spending doesn't look like it's been adding undue inflation pressure in the past year</li><li>It's easier to get inflation down if governments and central banks are moving int he same direction</li><li>Now is not the time to discuss reductions in the overnight rate</li><li>Says he wouldn't use the term 'stagflation'</li><li>The risks that oil could go a lot higher have increased</li></ul>

This article was written by Adam Button at www.forexlive.com.