‘Central banks won’t let stagflation take hold’

A man walks past the US Federal Reserve in Washington, DC, on March 16, 2022.

OTTAWA: Hours after delivering the biggest interest-rate hike in 22 years in Canada, Tiff Macklem has a message for investors: There’s no reason to worry about inflation getting out of hand.

While there is plenty of uncertainty in the global economy, the Bank of Canada governor told Bloomberg News he’s quite certain that policy makers will be able to avoid a return of 1970s-style stagflation.