ROME (CP) - The Bank of Canada, which raised key interest
rates by a quarter-point on March 4, is poised to boost
them again "over time" to dampen inflation, bank governor
David Dodge said Tuesday. In a speech to the Italian
Bankers Association, Dodge said inflation in Canada has
been above its two per cent target for the past few
months, while monetary policy remains stimulative with
low interest rates.
"Over time, further reductions in monetary stimulus will
be required to return inflation to the target over the
medium term," he said.
But before raising interest rates further, the central
bank will continue to monitor inflation, inflation
expectations, the state of business confidence and the
geopolitical situation.
The Bank of Canada is scheduled to make its next
pronouncement on a possible interest rate change April
15.
rates by a quarter-point on March 4, is poised to boost
them again "over time" to dampen inflation, bank governor
David Dodge said Tuesday. In a speech to the Italian
Bankers Association, Dodge said inflation in Canada has
been above its two per cent target for the past few
months, while monetary policy remains stimulative with
low interest rates.
"Over time, further reductions in monetary stimulus will
be required to return inflation to the target over the
medium term," he said.
But before raising interest rates further, the central
bank will continue to monitor inflation, inflation
expectations, the state of business confidence and the
geopolitical situation.
The Bank of Canada is scheduled to make its next
pronouncement on a possible interest rate change April
15.