Bank of Canada to act aggressively

Inflation hits a 30-year high of 5.1% in January

OTTAWA:

The Bank of Canada said on Thursday it would act “with determination” to rein in soaring prices, saying a failure to act decisively would make it much more painful to bring inflation back to target.

Bank of Canada Governor Tiff Macklem, speaking to a business audience, said the central bank did not intend to actively sell bonds when it embarks on its first-ever quantitative tightening programme, instead allowing holdings to roll off as they mature.

Inflation in Canada hit a 30-year high of 5.1% in January and price pressures are broadening, making buying necessities like gas and groceries more expensive. Despite this development, inflation expectations remain well anchored, Macklem said. “Canadians can expect us to use our tools with determination to keep them that way,” he told the CFA Society Toronto in a webcast. 

Published in The Express Tribune, March 4^th, 2022.

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