Macklem Warns Consecutive Rate Hikes Possible If Energy-Driven Inflation Broadens
Bank of Canada Governor Tiff Macklem said that if higher energy prices lead to generalized inflation, consecutive rate increases may be needed. He also noted recent volatility in Canadian jobs data, with employment little changed since January.
Bank of Canada Governor Tiff Macklem cautioned that a sustained rise in energy prices could spill over into broader inflation, potentially forcing the central bank to hike rates consecutively.
He also underscored the volatility in recent Canadian employment figures, stating that overall payrolls have remained essentially flat since January. The remarks suggest the BoC is balancing inflation risks against a still-softening labour market.
Source: First Squawk