Bank of Canada (BoC) Governor Tiff Macklem warned interest rates might have to go up again, according to Blacklock’s Reporter. “If new developments push inflation higher, we may still need to raise rates,” said Macklem at a House of Commons Finance Committee hearing. The BoC’s next rate announcement is on March 6. It said it has not “ruled out further policy rate increases.”The BoC kept its interbank loan rate at 5% since raising it a quarter point in July. If changes happen, Macklem said it might have to raise interest rates. “When can we cut them?” he said. “We can’t put it on the calendar.”Liberal MP Yvan Baker (Etobicoke Centre, ON) asked when interest rates will come down. For interest rates to come down, Macklem said it needs to “have more assurance those inflation pressures are easing and inflation is clearly heading back to 2%." Statistics Canada said the inflation rate is 3.4%. However, it said housing costs are too high and expected to create upward pressure on inflation for some time. Macklem admitted Canadians want to see inflation come down. This is because they are tired of seeing prices go up and want interest rates to go down. While the BoC has an inflation target, NDP MP Daniel Blaikie (Elmwood-Transcona, MB) asked if there was an ideal interest rate. Macklem said the ideal interest rate is the one getting Canada to 2% inflation, which it does not know what it is going to be. Conservative MP Jasraj Singh Hallan (Calgary-Forest Lawn, AB) questioned whether Canadians should anticipate stagflation this year. While Macklem would not call it stagnation, he admitted economic growth is weak. If the trend continues, Singh Hallan asked if there is a fear of some form of stagflation if unemployment continues to rise. “Yes, unemployment has come up but it was extremely low,” said Macklem.“It is back to more normal levels.”The Economic Council of Canada described stagflation in a report in 1980 as a period where there are low rates of economic growth and high rates of price inflation. When Canada went through stagflation from 1974 to 1978, it saw annual economic growth average 3.3% while the inflation rate was at 9.2%. The BoC said on January 24 the end is near as far as interest rate hikes go. READ MORE: Bank of Canada signals end to rate hikes, cuts could come by JuneThat was the main takeaway from its rate announcement, signalling a softer tone going forward.Although it held rates steady at 5% — a 22-year high — for a fourth consecutive meeting, analysts had been looking for language that would provide an indicator of its future plans in the coming months.