Bank of Canada keeps opportunity available for further oversized rate increase

One of the Bank of Canada officials, holding a senior position at the organization, spoke about a possibility of the further oversized interest rate hikes that the bank keeps allowable, as the bank keeps considering front-loading as the most efficient way of controlling the pace of price increasing, which has become the fastest one in almost forty years.

As it was said by Senior Deputy Governor Carolyn Rogers, there’s a necessity of significant tightening of monetary policy to curb the inflation.

She also noted that although some preliminary signs of monetary policy’s positive results were observed by the bank, there’s still much work to do. Rogers repeated that the main objective is the cooling of demand, which has to be conducted without creating conditions for recession happening.

The Bank of Canada has recently increased the policy rate to the record high of 14 years, reaching the level of 3.25%. The bank representatives have warned about a need of further tightening. To this day, the Bank of Canada has made a total hike of 300 basis points over six months, overtaking similar entities from other advanced countries.