Bank of Canada Governor Tiff Macklem confirmed yesterday, Wednesday, that the Bank of Canada is close to starting to cut interest rates from their highest levels in 23 years.

In his testimony before the Senate Banking Committee, Macklem said inflation is decreasing and that Canadians want to know when the central bank will begin to lower interest rates.

He added: "The short answer is we are getting closer to lowering interest rates."

It is worth noting that the annual inflation rate in Canada reached 2.9% in March, slightly higher than the previous month, and the Bank of Canada aims to bring inflation down to 2%.

Additionally, inflation has remained below 3% since January, in line with the central bank's expectations that it will stay close to this level in the first half of 2024, as the ongoing decline in the core consumer price measures is closely monitored.

Macklem said: "We see what we need to see, but we need to see it for a longer period to be confident that progress toward price stability will continue."