MNI BRIEF: BOC Saw Risk In Premature Hike And Waiting Too Long

Bank of Canada Governor Tiff Macklem said Wednesday after holding his policy rate there's no risk-free choice in any potential response to higher oil prices because hiking quickly would be a mistake if those costs soon normalize and danger in waiting too long if they remain elevated. 

“If we had raised rates now and then oil prices come down in line with what the market’s expecting, by the time those higher rates are impacting the economy, they wouldn’t be needed,” he said at a press conference. There is also evidence firms are reluctant to pass on the full rise of energy prices because they could lose clients, he said. (MNI INTERVIEW: BOC Inflation Patience Is Warranted- IMF Rep)