Interest rate hikes possible if inflation and high energy prices become persistent, Tiff Macklem tells MPs

The Bank of Canada will have no choice but to raise interest rates if high energy prices and inflation become persistent, central bank governor Tiff Macklem told MPs on the House of Commons’ finance committee on Monday.

Macklem used his appearance at the committee on Monday to reiterate his core message: That the Bank of Canada is monitoring the Iran war’s impact on inflation, and it is prepared to do anything necessary to prevent persistent inflation if energy prices stay high.

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