Bank of Canada (BoC) Governor Tiff Macklem says interest rates may need to stay higher “for longer” in order to return inflation to its 2 percent target.
“When the [BoC’s] governing council met last week, we discussed whether we’ve raised rates enough, and we considered the likelihood that the policy rate may need to remain restrictive for longer to return inflation to the 2 percent target,” Macklem told the Standing Senate Committee on Banking, Commerce and the Economy on April 18.
In his opening statement to the committee, Macklem noted that Canada’s annual Consumer Price Index inflation was down to 4.3 percent in March, led by “falling goods price inflation,” and that further declines are expected….