Bank of Canada Head Says It Is Unclear How Quickly Inflation Will Drop

A sign is pictured outside the Bank of Canada building in Ottawa, Ontario, Canada, on May 23, 2017. Chris Wattie/Reuters

OTTAWA—Bank of Canada Governor Tiff Macklem said on Wednesday there was uncertainty about how quickly inflation would come back down into the central bank’s comfort zone, due to the unique nature of the COVID-19 pandemic.

Macklem, speaking to the Senate banking committee, also reiterated that interest rates need to rise to tackle inflation, which is currently at 4.8 percent, more than double the central bank’s 2 percent target and well above its 1–3 percent control range.