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Bank of Canada's Governor Says Its Base Case Is for Inflation to "Gradually Ease"

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The Bank of Canada's Governor Tiff Macklem on Wednesday said the central bank's base case is that inflation will gradually ease, but it's ready to hike rates if high energy prices pass through to other sectors.

The BoC is "ready" to hike rates, even in consecutive moves, if the inflation situation requires it, the governor said in a press conference after the central bank decided earlier Wednesday to keep rates unchanged for the sixth consecutive meeting.

Governor Macklem added that he was encouraged by the pickup in the Canadian economy, although the focus was on how sustainable that expansion is.

The Canadian dollar's depreciation against the US dollar did not play a significant factor in Wednesday's policy decision, according to Macklem.

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