Governor, Central Bank of Canada: Increased inflation risk, with multiple interest rates if necessary

On 3 September, the Governor of the Central Bank of Canada, McLeem, stated at a press conference that Canada ' s current inflation levels were still too high, mainly in gasoline and energy prices. According to McLeem, the greater risk to inflation today lies in the evolution of the situation in the Middle East, how long oil prices will last, and eventually how high, the central bank will follow inflation data closely and make policy decisions accordingly. He stated that the central bank had limited tolerance for high inflation, which, if judged to be a continuing problem, might require multiple interest rates, which were by no means the only result, and that the central bank was ready to adjust monetary policy as needed. At the same time, while the Canadian economy has grown steadily in the new phase of trade disputes, the new United States tariff measures will put pressure on economic growth in the fourth quarter. McLeem also noted that there had been some spillover effects on Canada from global bond yields, which would be taken into account by central banks; if monetary policy failed to meet its targets, the market would be repricing。