Bank of Canada

OTTAWA—Bank of Canada Gov. Tiff Macklem says the central bank is moving toward a meeting-by-meeting approach on further interest rate increases, based on how the economy responds to its rapid-fire tightening of financial conditions. “We do expect that interest rates will need to go higher, to get inflation all the way back to the inflation target” of 2%, Mr. Macklem said during the “Policy Speaking” podcast of the Ottawa-based Public Policy Forum. “Exactly how much higher it has to go and for how long…

OTTAWA—The Bank of Canada delivered another hefty increase to its main interest rate, taking it above 3% for the first time in over 14 years, and said rates need to go higher to tame inflation. The Bank of Canada on Wednesday lifted its overnight target rate by 0.75 percentage points to 3.25%, following a surprise full-percentage-point increase in July. Following five increases beginning in March, the central bank’s benchmark interest rate is now 3 percentage points higher than where it…

OTTAWA—The rapid acceleration in prices has increased the likelihood the Bank of Canada may need to double its policy interest rate, from its current 1.5% level to 3% or higher, to drive inflation toward its 2% target, a senior central bank official said Thursday. “The bottom line is that the risk is now greater that inflation expectations could de-anchor and high inflation could become entrenched,” Bank of Canada deputy governor Paul Beaudry said in a speech to a business audience in Gatineau, Quebec. “This…