FULL TEXT- Bank of Canada to be cautious about future rate moves

OTTAWA, March 12 (Reuters) - The Bank of Canada released the pursuing substance of opening remarks by Governor Tiff Macklem connected Wednesday:

"Good morning. I’m pleased to beryllium present with Senior Deputy Governor Carolyn Rogers to sermon our argumentation decision.

"Today, we lowered the argumentation involvement complaint by 25 ground points, bringing it to 2.75%.

"The Canadian system ended 2024 successful bully shape. Inflation has been adjacent to the 2% people since past summer. Substantial cuts to our argumentation complaint done the 2nd fractional of past twelvemonth boosted household spending and economical growth.

"However, successful caller months, the pervasive uncertainty created by continuously changing US tariff threats has shaken concern and user confidence. This is restraining household spending intentions and businesses’ plans to prosecute and invest.

"Against this backdrop, and with ostentation adjacent the 2% target, Governing Council decided to trim the argumentation complaint a further 25 ground points.

"Looking ahead, the commercialized struggle with the United States tin beryllium expected to measurement connected economical activity, portion besides expanding prices and inflation. Governing Council volition proceed cautiously with immoderate further changes to our argumentation complaint given

the request to measure some the upward pressures connected ostentation from higher costs and the downward pressures from weaker demand.

"Let maine grow connected these cardinal considerations.

"Economic information since our January Monetary Policy Report (MPR) suggests the Canadian system ended 2024 connected a stronger footing than we expected. Past involvement complaint cuts person boosted user spending and concern investment, expanding home request successful the 4th fourth by a robust 5.6%. Overall, GDP

grew 2.6% successful the 4th fourth aft upwardly revised maturation of 2.2% successful the 3rd quarter. This maturation way is considerably stronger than we were expecting based connected the accusation we had successful January.

"Job maturation besides strengthened astir the extremity of the twelvemonth earlier stalling successful February. Growth successful employment accrued successful November done January, surpassing labour unit growth, and the unemployment complaint declined to 6.6%. There were besides signs that wage maturation is moderating.

"Inflation has remained adjacent to the 2% target. The impermanent GST/HST vacation has lowered immoderate user prices, but January ostentation came successful a small firmer than expected astatine 1.9%. Inflation is forecast to summation to astir 2½% successful March

with the extremity of the taxation break.

"Today, we person published caller survey information connected what we are proceeding from businesses and households. While it is excessively aboriginal to spot overmuch interaction of caller tariffs connected economical activity, our surveys suggest that threats of caller tariffs and uncertainty astir the Canada-US commercialized narration are already having a big