More rate hikes may be needed: Former BoC Official

One former Canadian central banker said interest rates may need to go even higher after the Bank of Canada on Wednesday moved rates to its highest level in 15 years while signalling a potential pause ahead.

“I think there's a good chance that more will need to be done by way of interest rate increases,” said John Murray, senior fellow at the C.D. Howe Institute and a former deputy governor at the Bank of Canada, in an interview with BNN Bloomberg Wednesday. 

The Bank of Canada increased interest rates Wednesday by 25 basis points, bringing the overnight policy rate to 4.5 per cent. The rate hike marks the eighth consecutive increase from the Canadian central bank. 

The rate increase was also coupled with guidance from the Bank of Canada that it will hold its policy rate at 4.5 per cent if the economy matches its monetary policy outlook.