The Governor of the Bank of Canada, Tiff Macklem, told the members of Parliament that the interest rate policy is at an "appropriate" level.

Bank of Canada Governor Tiff Macklem told MPs on Wednesday that policymakers at the central bank believe the current interest rate policy appears to be at an appropriate level, balancing inflation risks while supporting the country's economy. In his opening statement to the Canadian Parliament's Finance Committee, he essentially reiterated his comments from last week when he announced a 25 basis point rate cut, bringing the benchmark rate down to 2.25% - a cumulative reduction of 2.75 percentage points over 16 months. Macklem said, "If the economic developments broadly align with our outlook, then the Governing Council believes that the current policy rate remains appropriate, balancing the need to keep inflation close to 2% while helping the Canadian economy navigate this period of structural adjustment."