Macklem acknowledged that higher interest rates pose challenges, but emphasized their crucial role in combating inflation. As of September, inflation stood at 3.8% and disproportionately affects society’s most vulnerable. Amid a weakening economy and easing inflation, the Bank is expected to maintain its key rate.
The debate over interest rates comes amid heightened political scrutiny of the Bank following Canada’s highest inflation levels in 40 years post-pandemic. Conservative Leader Pierre Poilievre had pledged to fire Macklem over these inflation concerns, while the NDP suggested the federal government could ask the Bank to stop raising rates. Finance Minister Chrystia Freeland faced backlash for her comments describing the bank’s decision to hold its key rate steady as “welcome relief.”
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Source: Economy - investing.com
