OTTAWA, Nov 23 (Reuters) – Inflation in Canada remains too strong, and higher interest rates will be needed to cool the overheating economy, Bank of Canada Governor Tiff Macklem said in testimony at the House of Commons on Wednesday.
“Inflation has come down in recent months, but we have yet to see a generalized decline in price pressures,” Macklem said. “This tightening phase will draw to a close. We are getting closer, but we are not there yet.”
Lifting pandemic stimulus sooner would’ve limited inflation: Bank of Canada’s Macklem
The Bank of Canada and the federal government could have taken their foot off the gas sooner when stimulating the economy during the COVID-19 pandemic, Governor Tiff Macklem said Wednesday, but he added that knowledge is only clear now with the benefit of hindsight.
