Bank of Canada Governor Tiff Macklem confirmed on Wednesday the central bank would have to continue hiking its interest rates, with the size of the coming increases dependent on the demand, supply challenges, and inflation.
In a press briefing following the bank's decision to hike its key rate by 50 basis points, Macklem noted that the bank is getting closer to ending its phase of policy tightening.
Commenting on inflation, he estimated that it will hover at about 7% in the final quarter of this year before returning to 3% in 2023 and eventually reaching the 2% target a year after.
