In a video posted to the central bank’s Twitter account, Bank of Canada Governor Tiff Macklem says that
inflation remains too high and that further interest rate hikes are needed.
The remarks come after the Bank of Canada raised its trendsetting interest rate by 75-basis points to
3.25% earlier in September.
In the video, Macklem says: “It is important that we get inflation back down so Canadians can plan their
spending and their savings, and they don’t get surprised by big changes in their cost of living.”
The Bank of Canada has aggressively raised interest rates this year to lower inflation that is at its highest
level in more than 30 years.
Canada’s inflation rate declined to 7.0% in August from 8.1% in June and 7.6% in July. The Bank of
Canada targets inflation at 2% annual growth.
“It is by raising interest rates that we’re going to slow spending in the economy, give the economy time to
catch up, and take the steam out of inflation,” Macklem says in the video.