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Bank of Canada governor Tiff Macklem says he won't 'rule anything out' on rates

On a day when the Federal Reserve spooked markets with its tough talk on interest rates, Bank of Canada governor Tiff Macklem says he won’t "rule anything out" when it comes to the central bank’s own interest rate path and taming Canada’s out-of-cont
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Bank of Canada Governor Tiff Macklem is seen during a news conference, Wednesday, April 13, 2022 in Ottawa. On a day when the Federal Reserve spooked markets with its tough talk on interest rates, Bank of Canada governor Tiff Macklem says he won’t "rule anything out" when it comes to the central bank’s own interest rate path and taming Canada’s out-of-control inflation. THE CANADIAN PRESS/Adrian Wyld

On a day when the Federal Reserve spooked markets with its tough talk on interest rates, Bank of Canada governor Tiff Macklem says he won’t "rule anything out" when it comes to the central bank’s own interest rate path and taming Canada’s out-of-control inflation.

Macklem spoke to reporters virtually Thursday from Washington, D.C. where he is attending meetings of the International Monetary Fund and World Bank Group, as well as meetings of G7 and G20 central bank governors and finance ministers.

He wouldn't rule out pushing rates beyond 50 basis points all in one sitting, after moving to lift rates by that amount to one per cent just last week, but said he "is prepared to be as forceful as needed."

Macklem says it will take longer for inflation to recede due to the pervasiveness of supply chain disruptions, the war in Ukraine and spike in COVID-19 cases in China.

Canada’s inflation rate soared above expectations to a three-decade high in March, hitting 6.7 per cent. 

Earlier Thursday, Federal Reserve chairman Jerome Powell said that a 50 basis point interest rate hike is possible in May, after one Fed member had suggested a 75 basis point jump can't be ruled out as inflation is now up to 8.5 per cent.

This report by The Canadian Press was first published April 21, 2022.

The Canadian Press