Bank of Canada Will Act to Cool Inflation If Prices Run Too Hot, Macklem Says

Bank of Canada Will Act to Cool Inflation If Prices Run Too Hot, Macklem Says
Bank of Canada Governor Tiff Macklem takes part in a news conference at the Bank of Canada in Ottawa on Dec. 15, 2020. The Canadian Press/Sean Kilpatrick
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OTTAWA—The governor of the Bank of Canada says the central bank will rein in inflation if temporary price pressures stubbornly stick around and appear more permanent.

Tiff Macklem says the central bank largely expects higher prices right now are temporary and the inflation rate will fall back to the bank’s two-percent target as the economy opens further.