"We need to increase the interest rate more. We’ve increased interest rates five times since March, and we’re already seeing results from our actions. Sectors that are more sensitive to interest rate increases, like housing, are already slowing," the Bank of Canada said in a statement.
High energy and food prices are among some of the global challenges impacting the inflation levels in Canada in addition to significant labor shortages at home and rising wages that translate into higher prices for Canadian consumers.
30 September 2022, 14:13 GMT
As the financial burden is transferred to consumers, the Bank of Canada said it has taken forceful action to restore price stability in the country.
"It will take time, but we are going to bring inflation back to the 2% target," the statement said.
As of September 7, the policy interest rate of Canada is 3.25%, with the inflation sitting at 7%. The Bank of Canada is expected to announce a new interest rate hike on October 26.