Governor: BoC can beat inflation without unemployment spike

Bank of Canada governor Tiff Macklem _ Bloomberg

OTTAWA: Bank of Canada (BoC) governor Tiff Macklem says the country’s economy is headed for a soft landing, suggesting the central bank expects the unemployment rate to rise but that a large increase isn’t needed to achieve the inflation target.

Macklem said Canada’s unemployment rate – which hit 6.2% in May – was “just above” pre-pandemic levels, when the labour market was close to “maximum sustainable employment” – the highest level of jobs an economy can have without stoking inflation.