MacLehose: Inflation risk increases, interest rate hike necessary

Bank of Canada Governor MacLehose stated that Canada's inflation level is too high, and the evolving situation in the Middle East poses inflation risks. The central bank will make policy decisions based on inflation data. If inflation poses a persistent problem and the central bank needs to raise interest rates, the central bank is ready to adjust monetary policy as needed. The new tariffs imposed by the United States will put pressure on economic growth in the fourth quarter, and global bond yields will have spillover effects on Canada, which the central bank will take into account.