© Reuters. Bank of Canada Governor Tiff Macklem arrives at a press conference in Ottawa, Ontario, Canada October 25, 2023. REUTERS/Patrick Doyle/File Photo

OTTAWA (Reuters) – Bank of Canada’s Governor Tiff Macklem reiterated on Thursday that new developments could push inflation higher and that would mean the central bank might still need to raise interest rates.

“If new developments push inflation higher, we may still need to raise rates,” said Macklem in his address to the finance committee in the House of Commons.

The central bank would want to see inflationary pressures easing with a clear downward momentum in underlying inflation as it is concerned about the persistence of underlying inflation.