Macklem Flags Risk of Delaying Rate Hikes Amid Ongoing Conflict

Bank of Canada Governor Tiff Macklem has cautioned that delaying interest rate hikes for too long may exacerbate inflationary pressures. In a speech scheduled to take place in Halifax, Nova Scotia, Macklem emphasized that policymakers do not want to be late to hike borrowing costs if prices remain contained.

However, the ongoing conflict in the Middle East has increased the risk of elevated and broadening inflation, according to Macklem. This development underscores the complexity of the current economic environment and the need for careful consideration of monetary policy decisions.