Addressing supply issues not substitute for rate hikes, says Bank of Canada officialOTTAWA — Bank of Canada senior deputy governor Carolyn Rogers says addressing supply problems could help ease inflationary pressures but such policies wouldn't substitute the need for higher interest rates. Rogers added that such policies, however, would be complementary to interest rate hikes and not substitutes. Last week, the central bank raised interest rates for the sixth consecutive time this year, raising its key interest rate by half a percentage point and indicating rates would have to rise further. Canada’s annual inflation rate was 6.9 per cent in September but has been steadily declining since reaching its highest rate this year of 8.1 per cent in June. Bank of Canada officials are typically called in to testify following the release of the April and October monetary policy reports.

Source: CBC News November 01, 2022 09:26 UTC