BoC Governor Macklem says if energy prices stay higher for longer, there could well be a need to raise the policy rate - Post-meeting press conference
Importance
Level 1
- AI not impacted policy decisions right now.
- There is no set timeline for possibility of raising rates.
- We have some slack in the economy, so we do not think higher energy prices will be quickly passed through to goods and services.
- There is a risk that inflation expectations are not as well anchored as they were before COVID.