Canada91裸聊视频檚 key interest rate could go up another half percentage point in June to help wrestle inflation under control, Bank of Canada governor Tiff Macklem signalled Monday.

91裸聊视频淚nflation is too high. It is higher than we expected,91裸聊视频� Macklem told the House of Commons standing committee on finance. 91裸聊视频淎nd it91裸聊视频檚 going to be elevated for longer than we previously thought.91裸聊视频�

Two weeks ago the central bank raised its key interest rate a half point to one per cent and warned more rate hikes would be coming as it works toward an inflation target of two per cent.

Macklem said that in looking ahead to its next decisions, 91裸聊视频渨e will be considering taking another 50-basis-point step.91裸聊视频�

91裸聊视频淭he economy needs higher rates and can handle them,91裸聊视频� he said. 91裸聊视频淲ith demand starting to run ahead of the economy91裸聊视频檚 capacity, we need higher rates to bring the economy into balance and cool domestic inflation.91裸聊视频�

Canada91裸聊视频檚 inflation rate hit a three-decade high of 6.7 per cent in March, well above what the central bank projected in its January monetary policy report.

Russia91裸聊视频檚 invasion of Ukraine has driven up the cost of energy and other commodities, and is further disrupting global supply chains, but there is also domestic pressure on prices, Macklem said.

The central bank foresees inflation averaging almost six per cent in the first half of this year and remaining elevated for the remainder of 2022, then easing in the second half of next year before returning to the two-per-cent target in 2024.

Inflation at five per cent for a year, or three percentage points above the bank91裸聊视频檚 target, costs the average Canadian an additional $2,000, Macklem said.

91裸聊视频淎nd it91裸聊视频檚 affecting more vulnerable members of society the most because they spend all their income and because prices of essential items like food and energy have risen sharply,91裸聊视频� he said.

91裸聊视频淲e are committed to using our policy interest rate to return inflation to target and we will do so forcefully if needed.91裸聊视频�

Macklem acknowledged that seeing mortgage payments and other borrowing costs increase as a result can be worrying for Canadians.

91裸聊视频淲e will be assessing the impacts of higher interest rates on the economy carefully,91裸聊视频� he said.

People should expect rates to rise toward a range the central bank considers 91裸聊视频渁 neutral interest rate that neither stimulates nor weighs on the economy,91裸聊视频� which the bank estimates to be between two and three per cent, he added.

91裸聊视频擳he Canadian Press