Interest rate hikes possible if inflation and high energy prices become persistent, Tiff Macklem tells MPs

Interest rate hikes possible if inflation and high energy prices become persistent, Tiff Macklem tells MPs

The Bank of Canada will have no choice but to raise interest rates if high energy prices and inflation become persistent, central bank governor Tiff Macklem told MPs on the House of Commons’ finance committee on Monday.

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Macklem says policymakers are watching for signs that higher oil prices are feeding into broader inflation, while trade risks could still shift the outlook toward rate cuts