The Governor of the Bank of Canada (BOC), Tiff Macklem came out with the latest statement on inflation in Canada and hinted at further interest rate setting.
In a video posted by the central bank on Twitter on Monday, Macklem said inflation was too high.
Therefore, it is important for the central bank to bring down all inflation so that people can plan their spending and savings, and not be surprised by big changes in their cost of living, he said.
Mackem said again, by raising interest rates the central bank will slow down spending in the economy, giving the economy time to recover and reduce inflation.
Like many other global central banks, the BOC is raising interest rates rapidly in response to inflation that has surged to a near 40-year high.
However, the central bank has faced criticism for raising borrowing costs as citizens struggle to cope with soaring prices of groceries and other necessities.
The BOC has increased interest rates by 300 basis points in just 6 months to bring inflation back to the 2% target.
Canada's inflation rate eased to 7.0% in August from a peak of 8.1% in June and 7.6% recorded in July.
Following this statement, the Canadian dollar slightly recovered from a 2-and-a-half-year low against the US dollar.
