Interest rates could continue to rise in Canada amid increasing inflation

There’s been speculation that interest rates are set to increase in Canada higher than first expected.

According to officials, the Bank of Canada could consider a larger rate increase than the half-point move it made last week.

It comes as Canada continues to grapple with inflation which is at a 31-year high.

The Bank of Canada last week raised its benchmark rate by half a percentage point, its biggest single hike in more than two decades.

The bank noted further rises could still be to come

When asked if the central bank would consider increasing rates by more than 50 basis points (bps) in one go, Governor of Bank of Canada Tiff Macklem stated that he was “not going to rule anything out.”

The governor this week addressed reporters in Washington where he was attending the G20/IMF meetings.

He says that supply pressures that have driven up prices globally are showing no signs of easing.

The Bank of Canada last week raised its benchmark rate by half a percentage point which is the largest single rise in 20 years.