BoC Minutes: Some members were more concerned about downside inflation risks

According to the Bank of Canada’s (BoC) minutes from a recent meeting that was released Wednesday, some governing council members were more concerned about downside risks to inflation.

Key quotes

Some Governing Council members were more concerned about downside risks to inflation.
Concern about downside risks was linked to the potential further weakening of the economy and labor market.
Other members took the view that risks to the inflation outlook were balanced.
Members discussed whether weakness in Canadian consumption and housing could partly be due to caution on the part of households.
Members felt consumers could be waiting for lower rates to make large purchases or enter the housing market.
Discussed scenario where the economy could weaken and it might be appropriate to speed the pace of cuts.
Labor market softening, wage growth still elevated.
Housing market subdued.
No pre-determined path for rates, decisions to be made meeting-by-meeting.
Council puzzled by successive upside surprises in US household spending.
Felt low US saving rate was a possible indicator of weakness going forward.
In China, continued weakness in domestic demand had increased the downside risk to the growth outlook.
The Bank of Canada cut rates by 25 bps at the meeting.
Macklem signalled a willingness to cut more-quickly after the decision.