Canada Restarts Rate Hikes, Warns Inflation ‘Could Get Stuck’ Higher

It's becoming clearer by the day that even in economies where rate increases should be highly efficient at curbing economic activity, inflation is difficult to dislodge once it becomes entrenched. (Who knew, right?) The Bank of Canada resumed its rate-hiking campaign on Wednesday after a two-meeting pause, underscoring the message from Tuesday's RBA hike. Investors can't assume a pause is everywhere and always synonymous with the end of tightening. Indeed, evidence from 2023's "hold" meetings