Bank of Canada Governor Tiff Macklem said the current inflation fight is the biggest test the central bank has faced since it started targeting inflation 30 years ago. Canada’s headline inflation rate dropped to 7.0% in August, with core inflation running at about 5%. Canada’s employers were actively looking to fill nearly 1 million jobs as of July, data released on Friday showed. Economists and money markets are leaning toward a 50-basis-point increase on Oct. 26. Macklem: ‘We need to cool the economy, (but) we don’t want to over-cool the economy,’ he said. The bank has raised its benchmark interest rate by 300 basis points since March, one of its steepest and fastest tightening cycles ever. . . .
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