Bank of Canada will continue to raise interest rates
On November 23, 2022, Tiff Macklem delivered an opening statement before the House of Commons Standing Committee on Finance. Bank of Canada expects that the rates will need to rise further, beyond the recent increase of 0.50%
The reasons for the continued increase remain the same from the Bank of Canada:
Inflation remains high and has not come down enough
Economy is still in excess demand - there continues to be labour shortage
Interest rates are only beginning to weigh on growth
Supply and demand need to be rebalanced to relieve price pressure
Bank of Canada expects inflation to be around 7% for the rest of 2022, 3% by end of 2023 and 2% by end of 2024.
