Bank of Canada may hike interest rates further if inflation gets stuck above 2%: Tiff Macklem

but said rates may need to stay high for a while because of wage pressure in a tight labour market and sticky services prices.Sign up to receive the daily top stories from the Financial Post, a division of Postmedia Network Inc.By clicking on the sign up button you consent to receive the above newsletter from Postmedia Network Inc. You may unsubscribe any time by clicking on the unsubscribe link at the bottom of our emails or any newsletter. Postmedia Network Inc.

“But there is a risk that these adjustments will take longer or stall, and inflation will get stuck materially above the two per cent target,” Macklem told the Toronto Region Board of Trade. If the bank sees signs inflation is becoming entrenched above two per cent, “we are prepared to raise rates further,” he said.

After eight consecutive rate hikes, the bank said in January that it would pause its tightening campaign and not raise rates again if inflation came down as expected.

Loans Loans Latest News, Loans Loans Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Bank of Canada may hike interest rates further if inflation gets stuck above 2%: Tiff MacklemInflation risks getting stuck significantly above the Bank of Canada\u0027s 2% target and if that happens, the bank will raise rates. Read on.
Source: nationalpost - 🏆 10. / 80 Read more »

Bank of Canada may hike rates further if inflation gets stuck above 2 per cent, Governor Tiff Macklem saysLast month the central bank left its key overnight interest rate on hold at 4.50%, but said rates may need to stay high for a while because of wage pressure in a tight labor market and sticky services prices
Source: globeandmail - 🏆 5. / 92 Read more »

Bank of Canada must stay the course to combat risk of sticky inflation, Governor Tiff Macklem saysMacklem’s comments suggest central bank plans to keep interest rates high even as inflation falls
Source: globeandmail - 🏆 5. / 92 Read more »

Bank of Canada interest rate hike adds pressure to tight rental marketPrices for rentals \u0027getting out of control\u0027 even as housing market
Source: nationalpost - 🏆 10. / 80 Read more »