CA BOC Gov Macklem Speaks

BoC's Gov. Macklem: I do worry that too much forward guidance becomes false precision, can become confusing BANK OF CANADA’S MACKLEM TO REPORTERS: IRAN-US PEACE DEAL TAKING AWAY SOME UPSIDE RISKS TO INFLATION BUT STILL LOOKING AT HIGHER PRICES IN PIPELINE #Canadaecon #IranWar #inflation BoC's Gov. Macklem: Overall, banks are not seeing so far much spreading of higher oil prices to other prices of other goods and services BoC's Gov. Macklem: Food inflation is a concern

Macklem voices concern over absence of worldwide crypto regulation

Good afternoon and thank you for the invitation. It’s a pleasure to be here with Paris Europlace and the Chambre de commerce France-Canada. Six weeks ago, I was here in Paris with G7 finance ministers and central bankers. Much of our meeting focused on the conflict in the Middle East and its implications for near-term growth and inflation. The US-Iran agreement signed last week is a very welcome development and global energy prices have begun to come down, though much remains to be worked out. We also discussed medium-term growth. We expressed concern that global imbalances are widening again, with some countries running large deficits and others running large surpluses that persist over time. And we discussed how to promote more balanced growth over the medium term. This is what I want to talk about today. Renewed G7 focus on global imbalances began last year under Canada’s presidency and has continued under France’s leadership this year. So it seems appropriate that a Canadian central banker talk about global imbalances while here in France. But I will acknowledge that this is not an easy topic. Global imbalances are not front of mind for households or businesses. And they are not even obviously problematic. Indeed, trade deficits and surpluses are an integral part of our mutually beneficial global system of open trade and investment. But when imbalances are too big and too one-sided for too long, they become excessive. When needed adjustment is not happening, imbalances can spill over —and then we all feel it. Through trade and investment flows, exchange rates and asset prices, imbalances can affect employment, inflation and financial security. And they can affect more than our economies—they can affect relations between countries. Canada is BANK OF CANADA'S MACKLEM SPEECH: WARNS RISING ROLE OF HEDGE FUNDS IN GOVT DEBT MARKET MAY BE MAKING THIS MARKET MORE FRAGILE, PRONE TO CONTAGION #finance #hedgefunds #economy BoC: Financial system dominated by new and less regulated players Macklem: while imbalances shift gradually, appeal of U.S. dollar may have prolonged persistence of imbalances Macklem: To build a more balanced and resilient global system, more destinations for savings beyond the U.S. are needed

Good afternoon. I’m pleased to be here with Senior Deputy Governor Carolyn Rogers to discuss our quarterly Monetary Policy Report and last week’s policy decision. Last Wednesday, Governing Council maintained the policy interest rate at 2.25%. We had three key messages. First, Canada is being buffeted by global events and geopolitical uncertainties, but our economy is growing and is expected to continue to grow. Second, after more than a year with inflation close to the 2% target, higher global energy prices are pushing inflation up. ...

Good afternoon. I’m pleased to be here with Senior Deputy Governor Carolyn Rogers to discuss our quarterly Monetary Policy Report and last week’s policy decision. Last Wednesday, Governing Council maintained the policy interest rate at 2.25%. We had three key messages. First, Canada is being buffeted by global events and geopolitical uncertainties, but our economy is growing and is expected to continue to grow. Second, after more than a year with inflation close to the 2% target, higher global energy prices are pushing inflation up. ...

Good morning. It’s a pleasure to be here—and it’s great to see such an impressive mix of market participants, policy-makers and practitioners. I’m looking forward to the fireside chat, so I’ll keep my remarks short to leave time for discussion. Conversations like this matter—especially when uncertainty is high and we’re all trying to manage the risks. As we speak, the actions taken against Iran by Israel and the United States have increased volatility in energy and financial markets and there is considerable uncertainty about the duration and fallout of this conflict. My focus today will be on some longer-term changes we’re seeing in the financial system. And I’m here today wearing two hats: as Governor of the Bank of Canada and as Chair of the Financial Stability Board’s Standing Committee on Assessment of Vulnerabilities (FSB SCAV). SCAV’s role isn’t to predict the next financial crisis or prescribe policy. It’s to step back and connect the dots across markets and jurisdictions to identify the systemic vulnerabilities. The goal is to understand the pressure points so they don’t become fractures. The global reach of the FSB complements the work of domestic central banks and regulators. It also complements the work of the private sector. Market participants manage the risks they face individually. But systemic risks can build beyond the sight line of any single firm. We all have a stake in a well-functioning financial system that channels savings into productive investments and helps households and businesses manage their risks. But to work well, the financial system needs a competitive marketplace with clear rules and good information. And because money moves across borders, the perspective needs to be global, with a degree of international coordination. Identifying pressure points in a changing financial system The rise of non-bank players, like hedge funds and private credit, in the global financial system has brought clear benefits by adding liquidity and flexibility to debt markets. But the shift away from the regulated banking sector has also increased risks to financial stability. Most investment firms do a good job of managing their own risks, but they can’t see dangers building across markets and borders. The Financial Stability Board, a global body, helps connect the dots to identify systemic vulnerabilities through its Standing Committee on Assessment of Vulnerabilities (SCAV). Today’s economic landscape has increased the urgency of this work: Just in | Bank of Canada Governor Macklem warns that the increasing risks from non-bank entities in global debt markets may be outpacing our capacity to comprehend and address them. Just in | Bank of Canada Governor Macklem expresses concern over potential market shocks that could increase interest rate volatility.