The leadership of the Canadian Central Bank may consider another increase in the prime rate by 0.5 percentage points at once, said yesterday the head of the Bank of Canada Tiff Maclem, speaking in the parliamentary committee.

In mid-April, the Central Bank increased the rate by 0.5 p.p. – To 1% per annum. This was the first such hike since May 2000.

At that time, the Bank of Canada noted the need for further increases in the cost of credit to keep inflation expectations at the target level of 2%. In March, consumer price growth reached an annualized rate of 6.7%, the highest since January 1991.

“We’ve been very clear that Canadians should expect to see further rate increases, and in the run-up to the next meetings I expect we will consider taking another” 0.5-bp increase, Macklem told lawmakers.

He added, however, that a larger increase “would be a very unusual” decision, The Wall Street Journal reported.

The Bank of Canada’s next rate meeting is scheduled for June 1. Further meetings will be held on July 13 and September 7.

According to the Central Bank’s April forecast, inflation in Canada will average 5.3% in 2022, while previously it was expected to increase consumer prices by 4.2%. Inflation is expected to slow to 2.3% next year and to the target 2% in 2024.