(In April 18 item, paragraph 3, corrects March inflation figure
to 4.3% from 4.6%)
By Steve Scherer and Ismail Shakil
OTTAWA, April 18 (Reuters) - Bank of Canada Governor
Tiff Macklem said on Tuesday that the current forecast is for
positive but weak growth for the rest of the year, and therefore
not a recession, and that by most people's measures would be a
"soft landing."
The bank raised interest rates eight consecutive times
through January, bringing the overnight benchmark to 4.50%, as
it battled inflation. It has since kept rates steady at two
meetings, in part because Macklem has said the goal is to slow
growth, but avoid a recession.
Avoiding a recession while bringing inflation back to its 2%
target, from 4.3% in March, would likely be seen by economists
as a "soft landing". The bank said last week the risk of a
recession this year had diminished.
For the last three quarters of this year, "we expect growth
to be small positive, so less than 1% but above zero," Macklem
told a parliamentary committee. "But it is going to be slightly
positive growth, which I think most people would call a soft
landing."
Macklem went on to say that the top risk to Canada's growth
scenario is a global recession. Macklem also said he expects
prices to come down further, but reiterated the bank stands
ready to raise rates again if necessary.
"We are prepared to raise the policy rate further" to get
inflation all the way to 2%, Macklem said.
(Reporting by Ismail Shakil and Steve Scherer in Ottawa;)
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