Although the central bank of Canada (BOC) has begun to slow its rate of tightening, governor Tiff Macklem said there is still a chance it could implement another sizeable hike in the coming period.
The statement was made by Tiff Macklem in response to questions in the banking, trade and economy committee of the Senate on Tuesday.
Supporting the following statement, he said the economy is still experiencing excess demand despite signs of rate increases slowing growth.
The string, the BOC sees interest rates need to go up and maybe with another bigger step, or down to a more normal step, said Macklem who thinks that there is still a lot to be done by the central bank.
The BOC surprised the market with a smaller-than-expected 50 basis point hike last week, while also predicting that economic growth will stall over the next three quarters.
Canadian inflation has eased to 6.9% from a peak of 8.1%, but is still far from the central bank's 2% target.
