Bank of Canada governor Tiff Macklem says we've come a long way in our fight against high inflation but it's still too soon to start lowering interest rates.
The central bank has done as expected and kept its key interest rate steady at five per cent.
Macklem says the governing council believes the central bank needs to give higher rates more time to do their work.
Speaking in Montreal, Macklem says history shows monetary policy is quite effective at controlling inflation in the medium term, but is unable to address short-term price fluctuations.
Macklem also says interest rates cannot fuel economic growth in the long run, noting that can only be reached through population growth or improvements on productivity.
