Bank of Canada isn’t entirely sure what the country’s natural rate of interest is and the central bank will have to discover it over time, said Governor Tiff Macklem in a Toronto event.
“We don’t really know what it is,” Macklem said, “and we’re going to have to discover what that is over time.” He also suggested it’s uncertain what is the exact pace and landing point in this rate cut cycle.
The Canadian central bank in April updated its estimate for the country’s neutral rate to the range of 2.25% to 3.25%.
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