Reuters reports the Bank of Canada Governor Tiff Macklem saying on Wednesday that Canada needs higher interest rates, though how high those rates go will depend on how the economy responds and how the outlook for inflation evolves.

Key comments

"The economy needs higher rates and can handle them," Macklem told a Senate committee, reiterating recent comments. "How high rates go will depend on how the economy responds and how the outlook for inflation evolves."

The Bank of Canada governor Macklem reiterates higher interest rates are needed, how high they will go depends on how the economy responds, how inflation outlook evolves

Macklem reiterates it would be extremely unusual to increase interest rates by more than 50 bps in one move

Macklem says bank may have to raise rates above neutral, to "a bit above 2% or 3%"

USD/CAD has not reacted to the comments.

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