The Governor of the Bank of Canada, Tiff Macklem, said that interest rates may need to rise further as inflation lasts longer.

This came in Governor Macklem's speech today at the Calgary Chamber of Commerce.

It is worth noting that this statement was made when the central bank decided the day before to keep interest rates at 5% due to signs of a slowdown in the economy.

Macklem said that the bank's board agreed that if inflationary pressures persist, the interest rate may need to be increased.

The inflation rate in Canada was 3.3 percent as of July, but the Bank of Canada expects inflation to move upward once before it declines.

Macklem said that the slow pace of inflation either means that raising interest rates needs more time to take effect or that interest rates have not increased as much yet.