BoC Macklem: Supply chain problems mean inflation is set to take longer to come down

The Governor of the Bank of Canada, Tiff Macklem, said global supply chain bottlenecks are not easing as quickly as expected, meaning inflation in Canada and among IMF members will probably take a little longer to come down.

"These bottlenecks are not easing as quickly as expected. And there was certainly a strong consensus these issues warrant continued attention and they are going to take some time to work through," said Macklem of his talks with IMF central bankers.

"What this all means, in all our countries, is that inflation - measures of inflation - are probably going to take a little longer to come back down," he added.

Macklem also said that while the supply chain hiccups are looking a bit more persistent, they continue to be viewed as transitory.

USD/CAD implications

The Canadian dollar has been the strongest of those on the Currency Strength Indicators since 30 Sep when the US dollar started to slide. The commodity complex is hot and CAD is propped up by sky-high oil prices,