Ottawa: At a time central banks across the world cutting interest rates amid crisis during inflation, the Bank of Canada has warned Canadians to brace a rough winter.
The Bank of Canada has already hiked the interest rates six times since March to 3.75 per cent. The Bank has also predicted for further hike in the coming months.
Governor Tiff Macklem discusses the relationship between inflation and employment and how the Bank of Canada is working to cool an overheated economy.
The best contribution the Bank of Canada can make to the well-being of Canadians is to keep prices low and stable. That’s because inflation that is near our 2% target and what economists call “maximum sustainable employment” are strongly connected, the Bank of Canada said in a statement.
“That’s why we have front-loaded our interest rate increases. And that’s why we are resolute in our commitment to return inflation to the 2% target. To get there, we need to rebalance the labour market. This will be a difficult adjustment. We want to do this in the best way possible for Canadian workers and businesses.”Governor Tiff Macklem said.