Bank of Canada officials were concerned that inflation could get “stuck” above 2 per cent even as they voted to keep the bank’s benchmark rate unchanged earlier this month, according to a summary of the rate decision deliberations.

By holding its key rate steady at 4.5 per cent on March 8, it became the first major central bank to pause monetary policy tightening this year.

After eight consecutive rate hikes, the bank’s governing council was “comfortable” with their forecast “that inflation will continue to ease this year as monetary policy tightening works its way through the economy and base-year effects pull down 12-month rates of inflation,” the summary said.

“However, they remain concerned about the risk that inflation could get stuck materially above the 2 per cent target.”

Central bank officials have said the pause in rate hikes is “conditional” and they are prepared to raise interest rates again if inflation does not come down as rapidly as expected.

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