Bank of Canada “may well need to raise interest rates” if Iran war continues to raise oil prices

By Global News

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Bank of Canada Governor Tiff Macklem announced the country’s central bank held its benchmark interest rate unchanged at 2.25 per cent on Wednesday. Inflation has jumped above three per cent in recent months as higher oil prices due to the war in Iran have sent gasoline prices skyrocketing. Macklem had this to say when asked about the economic impacts of the ongoing war: “The longer oil prices stay high, the bigger is the risk that that begins to spill over into the prices of other goods and services and inflation starts to broaden.” “If that happens, we may well need to raise interest rates,” the governor added. On the other hand, when asked if he was being overly optimistic that the economy could improve this year despite the many constraints faced by Canadians right now, Macklem pointed to the momentum of exports, Canadian consumerism and a stabilization in the housing market “after a period of decline.” For more info, please go to https://globalnews.ca Subscribe to Global

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