Bank of Canada chief: supply chain problems mean inflation is set to take longer to come down

  • 10/15/2021
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OTTAWA, Oct 14 (Reuters) - Global supply chain bottlenecks are not easing as quickly as expected, meaning inflation in Canada and among IMF members will probably take a little longer to come down, the Governor of the Bank of Canada said on Thursday. Those supply chain issues will weigh on Canada’s economic recovery in the near-term, meaning it is “reasonable” to expect that an expected rebound will not be as fast as the central bank forecast in July, Tiff Macklem told reporters after attending International Monetary Fund meetings in Washington, D.C. “These bottlenecks are not easing as quickly as expected. And there was certainly a strong consensus these issues warrant continued attention and they are going to take some time to work through,” said Macklem of his talks with IMF central bankers. “What this all means, in all our countries, is that inflation - measures of inflation - are probably going to take a little longer to come back down,” he continued. Still, Macklem said that while the supply chain hiccups are looking a bit more persistent, they continue to be viewed as transitory. Reporting by Julie Gordon and David Ljunggren Our Standards: The Thomson Reuters Trust Principles.

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