Bank of Canada Must Hike Rates to Tame Inflation -BoC Governor

Inflation is too high in Canada, so the Bank of Canada needs to increase interest rates to slow spending and give the economy time to catch up, Governor Tiff Macklem said on Monday in a video posted by the central bank on Twitter, Reuters reported. "Inflation is too high," Macklem said in a video tagged #AskTheBoC, echoing remarks made earlier this month after the central bank hiked its policy rate by 75-basis points to 3.25%. "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, like many of its global peers, is rapidly increasing interest rates in response to inflation running at levels not seen in decades. But the bank has faced public criticism for increasing borrowing costs at a time when many Canadians are already struggling to afford groceries and other essentials. Read more.