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Central Banks Won’t Let 1970s Stagflation Take Hold, Macklem Says

  • Bank of Canada governor sees soft landing, lower inflation
  • Says policymakers will be ‘much more ahead of it’ this time
Tiff Macklem speaks during an interview at Bank of Canada headquarters in Ottawa on April 13.

Tiff Macklem speaks during an interview at Bank of Canada headquarters in Ottawa on April 13.

Photographer: Justin Tang/Bloomberg
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Hours after delivering the biggest interest-rate hike in 22 years in Canada, Tiff Macklem had 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.