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MNI BRIEF: BOC Says Can Still Hike If Inflation Risks Emerge


Bank of Canada Governor Tiff Macklem reiterated Friday he could raise interest rates an 11th time if needed, adding back in a comment he dropped in an earlier speech that officials had made in an interest-rate decision earlier this month.

“We may be done, we may not be done,” he said at a press conference in Toronto. “If risks materialize, we are prepared to raise rates further.” Those risks include inflation sticking above the 2% target and new global events that boost inflation again, he said.

Inflation has been above target since March 2021 and Macklem said that makes him more sensitive to further delay in restoring stability, noting the long fight means “some of that public trust starts to get eroded.” Macklem also said economic growth will be slim and even close to zero in the next few quarters. (See: MNI INTERVIEW:Productivity Curbs BOC Cut Enthusiasm-Ex Adviser)

MNI Ottawa Bureau | +1 613-314-9647 |
MNI Ottawa Bureau | +1 613-314-9647 |

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