BOC reiterated dovish remarks
The current inflation rate continues to show a decline
Economic growth is predicted to be close to zero by the 3rd quarter
Bank of Canada (BOC) Governor Tiff Macklem said no further interest rate hikes will be needed if inflation falls as expected.
In a speech to financial analysts in Quebec on Tuesday, Macklem said the central bank would not need to raise rates further if new data released were in line with forecasts.
He added that inflation has now decreased which shows that the monetary policy is working, where economic growth is expected to be close to zero by the third quarter of this year.
The central bank has been among the most aggressive in implementing policy tightening to combat soaring inflation.
Over the past 11 months, it has increased rates by 4.5% to reduce inflation which is now starting to ease in reaction to the move.
At last month's meeting, the central bank signaled it would delay further steps to assess the cumulative impact of previous rate hikes on the economy.
Previously separately, he said that the BOC needs time to measure how households and businesses adjust to high interest rates before making further moves.
The Canadian dollar traded little changed at around 1.3394 against the US dollar in the Asian session.
