Canada March inflation data shows economy moving in right direction, says BoC governor

OTTAWA (Reuters) - Bank of Canada Governor Tiff Macklem said on Tuesday that inflation data for March suggests that underlying inflationary pressures were continuing to ease and the Canadian economy was moving in the right direction.

Macklem was speaking at an event in Washington after data on Tuesday showed Canada's annual inflation rate in March ticked up as expected to 2.9%, but the central bank's closely-watched measures of underlying price pressures eased for a third straight month.

The bank is looking for sustained signs that inflation is cooling before starting to lower its key policy rate from a near 23-year high of 5%.

(Reporting by Ismail Shakil in Ottawa, Editing by Franklin Paul)