BOC's Macklem: Bigger cuts are possible if economy and CPI is weaker

The last time a Bank of Canada governor spoke to the Canada-UK Chamber of Commerce it was 2018. My predecessor, Stephen Poloz, spoke to you about low global interest rates, the steady reduction of inflation risks and the successful conclusion of the North American trade negotiations. Brexit was in motion but not yet a reality. How the world has changed in just six years. The pandemic, Russia’s unprovoked invasion of Ukraine, and a global battle against inflation have altered the economic landscape. Concerns about national and economic security are changing trade, investment, and business decisions. Accelerating digitalization, particularly artificial intelligence (AI), is creating new competition for economic power. Geopolitical tensions are shifting economic relationships, and industrial policy is making a comeback. In my time with you today, I’ll talk about how trade is changi The pandemic, Russia’s unprovoked invasion of Ukraine, and a global battle against inflation have altered the economic landscape. Concerns about national and economic security are changing trade, investment, and business decisions. Accele post: BOC'S GOV. MACKLEM: THE COST OF GLOBAL GOODS MAY NOT FALL AS FAST AS GLOBALIZATION, AND THAT COULD PUT MORE UPWARD PRESSURE ON INFLATION. post: BOC'S MACKLEM: SEEMINGLY VAST POTENTIAL OF DIGITALIZATION SUGGESTS FUTURE GROWTH IN TRADE WILL TILT TO SERVICES || CANADA NEEDS TO BUILD BETTER TRADE RELATIONSHIPS AND PRODUCE THE PRODUCTS PEOPLE WANT TO BUY post: BOC'S MACKLEM: **WE HAVE TO FOCUS ON RISK MANAGEMENT, BALANCING UPSIDE RISKS TO INFLATION WITH DOWNSIDE RISKS TO ECONOMIC GROWTH **TRADE DISRUPTIONS MAY ALSO INCREASE THE VARIABILITY OF INFLATION **COST OF GLOBAL GOODS MAY NOT FALL AS FAST AS GLOBALIZATION, AND THAT COULD…

post: OPEC CITES DATA RECEIVED YEAR TO DATE FOR A CUT IN THE 2024 DEMAND GROWTH FORECAST. post: OPEC CUTS 2024 GLOBAL OIL DEMAND GROWTH FORECAST TO 2.03 MILLION BPD (PREV. FORECAST 2.11 MILLION BPD) || OPEC CITES DATA RECEIVED YEAR TO DATE FOR CUT IN 2024 DEMAND GROWTH FORECAST OPEC TRIMS 2025 GLOBAL OIL DEMAND GROWTH FORECAST TO 1.74 MILLION BPD (PREV. FORECAST 1.78…Monthly Oil Market Report In August, the OPEC Reference Basket (ORB) value fell by $6.02, or 7.1%, m-o-m, to average $78.41/b. The ICE Brent front-month contract dropped by $5.00, or 6.0%, m-o-m, to stand at $78.88/b. The NYMEX WTI front-month contract dropped by $5.05, or 6.3%, to average $75.43/b. The DME Oman front-month contract dropped by $5.83, or 7.0%, to settle at $77.54/b. The front-month ICE Brent/NYMEX WTI spread widened by 5¢, m-o-m, to stand at $3.45/b. The forward curves of oil futures prices flattened slightly, but all major crude benchmarks remained in backwardation. Money managers closed long positions and raised short positions, particularly in the ICE Brent ma