Bank of Canada governor Tiff Macklem says he expects 2024 to be a transition year as higher interest rates slow down the economy, making way for lower inflation.
In his final speech of the year, the governor laid out his expectations for a softer economy next year and offered criteria for the central bank to start discussing rate cuts.
“The effects of past interest rate increases will continue to work through the economy, restraining spending and limit growth and employment. Unfortunately, this is what’s needed to take the remaining stream out of inflation,” Macklem’s prepared remarks read.
However, this weakness is what will help get inflation
