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Bank of Canada Governor Speaks on Rate Increase and Inflation

Bank of Canada Governor Tiff Macklem announced a rate hike on Wednesday and stated that the central bank would pause to see how the economy was reacting to tightening.

President of the Bank of Canada, Tiff Macklem
President of the Bank of Canada, Tiff Macklem

Macklem made it clear in an interview with Reuters that he is focused on whether interest rates would need to go higher and is not even considering cutting them as part of the fight against inflation.

No Cut in Interest Rates

"As things start to get back to normal, at some point, yes, we probably will be thinking about some modest cuts in interest rates," Macklem said. "But inflation is still over 6%. We're not talking about cuts. We need to think about cuts ... the question we're asking ourselves is, 'Have we done enough?' We're pausing to assess whether we've done enough," Macklem said.