Bank of Canada may need to raise rates again, despite this week's hold: Macklem

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Bank of Canada may need to raise rates again, despite this week's hold: Macklem
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CALGARY — Bank of Canada Governor Tiff Macklem says the central bank may have to raise interest rates further, given inflation may stay high for some time. That’s according to prepared remarks the governor is delivering before the Calgary Chamber of Commerce today. His speech comes one day after the central bank decided to hold its key interest rate steady at five per cent as signs of a slowing economy grow. However, Macklem says today that the central bank’s governing council agreed rates may n

CALGARY — Bank of Canada Governor Tiff Macklem says the central bank may have to raise interest rates further, given inflation may stay high for some time.

His speech comes one day after the central bank decided to hold its key interest rate steady at five per cent as signs of a slowing economy grow.

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Bank of Canada says interest rates may not be high enoughBank of Canada says interest rates may not be high enoughBank of Canada Governor Tiff Macklem on Thursday said interest rates may not be high enough to bring inflation back down to target, sending a hawkish message after holding borrowing costs at a 22-year high a day earlier. On Wednesday, the Bank of Canada (BoC) kept its key rate at 5%, noting the economy had entered a period of weaker growth, but said it could hike again should price pressures persist. Inflation has remained above the bank's 2% target for 27 months.
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Bank of Canada seen holding rates steady after economy shrank in Q2Bank of Canada seen holding rates steady after economy shrank in Q2The Bank of Canada on Wednesday is expected to keep rates on hold at a 22-year high of 5% after the economy unexpectedly shrank in the second quarter, analysts said. The central bank hiked rates by a quarter point in both June and July, and then said it was prepared to raise rates again to tame inflation that has remained above the bank's 2% target for 27 months. 'The Bank of Canada has the cover in the GDP data to stay on pause with a hawkish bias,' Derek Holt, vice president of economics at Scotiabank, said in a note.
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