On a day when the Federal Reserve spooked markets with its tough talk on interest rates, Bank of sa国际传媒 governor Tiff Macklem says he won鈥檛 "rule anything out" when it comes to the central bank鈥檚 own interest rate path and taming sa国际传媒鈥檚 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.
sa国际传媒鈥檚 inflation rate soared above expectations to a three-decade high in March, hitting 6.7 per cent.聽
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
