Canada News

War impact, lending boom mean inflation expectations will likely rise despite latest rate hike

Summary

In the current roar of high inflation, last week’s quarter-point increase in interest rates by the Bank of Canada will likely be a whisper too quiet for most Canadians to hear. According to a flurry of statements and speeches, including […]

In the current roar of high inflation, last week’s quarter-point increase in interest rates by the Bank of Canada will likely be a whisper too quiet for most Canadians to hear.

According to a flurry of statements and speeches, including testimony to a parliamentary committee, the central bank’s governor, Tiff Macklem, has begun his long-awaited attack on inflation that’s meant to convince Canadians they should not expect price rises to continue.

Rate hikes, the Bank of Canada governor said, were “needed to keep inflation expectations well anchored and to limit the broadening of inflationary pressures so that inflation falls back as supply disruptions ease.”

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