RBC’s McKay Calls for ‘Rapid Action’ on Rates to Tame Inflation
- Head of Canada’s largest bank sees risk of wage-price cycle
- Country must solve housing shortage to expand labor pool: CEO
This article is for subscribers only.
Royal Bank of Canada Chief Executive Officer David McKay said the country’s central bank needs to take “rapid action” with multiple interest rate increases to bring inflation under control.
Speaking in an interview with Bloomberg News on Tuesday, McKay said he does not think the recent acceleration of inflation was transitory. He sees some signs of a wage-price cycle taking root that has already pushed up costs permanently.