ottawathe bank of canada on thursday signaled its growing discomfort with high inflation and the possibility that supply chain disruptions could last longer than policy makers had anticipated bank of canada deputy governor toni gravelle said in prepared remarks for a speech that the central bank continues to expect supply constraints to ease over time but he said the possibility that they could turn out to be more persistent was a prominent topic of discussion ahead of this weeks interest rate decision with cpi inflation considerably above our target range of 1 to 3 the materialization of upside risks is of greater concern mr gravelle said according to his prepared remarks if supply disruptions and their related cost pressures turn out to be longerlasting and if demand for goods remains strong he said this would increase the likelihood of inflation remaining above our control range the bank of canada sets interest rates to achieve and maintain inflation at the midpoint of a 1 to 3 control range consumerprice index inflation in canada has been above 3 since april although the central bank has maintained that it sees the price increases as temporary and linked to the circumstances of the pandemic mr gravelle said in his speech that the central bank continues to expect elevated inflation to subside in the second half of 2022 he said the bank would watch inflation expectations and labor costs closely to make sure the forces that are pushing prices higher are temporary and dont feed into ongoing inflation