Macklem Warns Against Delaying Rate Hikes Amid Stubborn Inflation

Bank of Canada Governor Tiff Macklem warned that policymakers risk being too slow to respond if inflationary pressures become more persistent. In a recent speech, he emphasized the need for timely action to control inflation.

Macklem noted that while officials prefer not to hike interest rates if prices remain contained, they also don't want to delay action if inflation proves stubborn. The current yearly change in the consumer price index is around 3%, largely due to higher gasoline prices.

He predicted that if oil prices stay near $100 per barrel, inflation will edge up in the coming months. Macklem also downplayed the risk posed by new U.S. tariffs on Canadian exports, stating that the bank expects limited damage from the levies.