OTTAWA — The Bank of Canada has not ruled out another oversized interest rate hike to fight sky\u002Dhigh inflation, governor Tiff Macklem said on Tuesday,…
Macklem, answering questions in the Senate’s banking, trade and economy committee, said that while the central bank is starting to see signs rate increases are slowing the economy, it is still in excess demand.Sign up to receive daily headline news from Ottawa Citizen, a division of Postmedia Network Inc.By clicking on the sign up button you consent to receive the above newsletter from Postmedia Network Inc.
The Bank of Canada surprised markets with a smaller-than-expected 50-basis point increase last week, lifting the policy rate to 3.75%. It also forecast the economy would stall over the next three quarters. Inflation, meanwhile, has eased to 6.9% from a peak of 8.1%, but it is still far above the central bank’s 2% target and underlying price pressures remain broad-based.Article content“It’s been a long time since we had high inflation and we’re rediscovering that it corrodes the social fabric,” he added. “It makes people angry. People feel ripped off. And that’s one of the big problems with inflation and it’s an important reason why we got to get it back down.
“The effects of higher rates will take time to spread through the economy. … There are no easy outs to restoring price stability.”
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Ottawa to lift restrictions on hours of work for international studentsThe federal government will lift the 20-hour-per-week limit on work for international students on Nov. 15, as some face financial struggles and businesses face difficulties hiring workers
Read more »
Spain's Jordi Savall, early music 'spy,' brings his ensemble to OttawaThe noted conductor, bandleader and viola da gamba player, and the group Hespèrion XXI will play the Carleton Dominion\u002DChalmers Centre
Read more »
Music and Beyond: Spain's Jordi Savall, early music 'spy,' brings his ensemble to OttawaThe noted conductor, bandleader and viola da gamba player, and the group Hespèrion XXI will play the Carleton Dominion\u002DChalmers Centre
Read more »
‘Freedom Convoy’s’ intelligence reports reveal organizers knew they could close OttawaThe trove of reports — which the Star accessed Monday — is referenced in an Ontario Provincial Police threat assessment tabled at the public inquiry.
Read more »
Ottawa retail gem closing after 106 yearsNettleton’s Jewellery, a beloved and enduring family business, is closing after 106 years. Its owners are retiring. CTV’s Joel Haslam reports.
Read more »