In a speech to a business audience in the Ottawa region, Paul Beaudry said price pressures were broadening, with inflation much higher than the central bank had forecast and set to increase further before easing. "This raises the likelihood that we may need to raise the policy rate to the top end or above the neutral range to bring demand and supply into balance and keep inflation expectations well anchored," said Beaudry. "Preventing high inflation from becoming entrenched is much more desirable than trying to quash it once it has," he said.