In an interview with CBC's Power & Politics, Poloz said higher oil and gas prices may be here to stay. The Canadian economy may need to find a way to permanently adjust to higher oil and gas prices even when the cost of other goods start to fall, according to a former Bank of Canada governor. Earlier in the day Statistics Canada reported that Canada's inflation rate hit a nearly 40 year high of 7.7 per cent. The United States Federal Reserve recently hiked its benchmark interest rate 75 basis points to 1.75 per cent, its single biggest hike in decades. Higher interest rates would cause 'pain': NDP leaderNDP leader Jagmeet Singh said the higher borrowing costs that come with rising interest rates will hurt many Canadians.

Source: CBC News June 23, 2022 00:54 UTC