Bank of Canada Needs to 'Stay the Course,' Macklem Says

The video discusses the current state of monetary policy, highlighting the need for continued quantitative tightening due to persistent underlying inflationary pressures. Despite progress in reducing CPI inflation from 8.1% to 3.4%, higher interest rates are necessary to manage demand and price pressures. The video emphasizes the importance of balancing the risks of under and over-tightening to avoid future economic challenges and maintain price stability in Canada.

What are the two broad considerations reflected in the decision to continue quantitative tightening?

How has CPI inflation changed from last summer to May?

What are the risks associated with under and over tightening monetary policy?

What does the speaker mean by saying 'we've come a long way and we don't want to squander the progress we've made'?

What is the goal of the current monetary policy in relation to price stability?