Macklem, speaking to reporters Friday after the annual meetings of the International Monetary Fund and World Bank Group in Washington, said his talks there reinforced a commitment for central banks to “keep a steady hand and keep focused on price stability.”
“There was a broad consensus that inflation remains the most immediate threat to current and future prosperity,” Macklem said, adding that “there was concern that the longer inflation remained high, the bigger was the risk that high inflation becomes entrenched.”
The comments reinforce the Bank of Canada’s discomfort with elevated price pressures and its commitment to keep raising borrowing costs alongside its global peers, even amid financial volatility caused in part by the
