Bank of Canada may raise interest rates again: Macklem

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 need to rise again if inflationary pressures persist.

Canada’s inflation rate was 3.3 per cent in July, but the Bank of Canada expects inflation to flare up in the coming months before declining again.

Macklem says slowing progress on getting inflation down either means previous rate hikes need more time to take effect, or interest rates aren’t high enough yet.