The Bank of Canada in March 2020 slashed its benchmark rate to 0.25%, a record low and the current ELB, as the coronavirus pandemic took hold. Macklem said forward guidance - essentially committing to holding rates low for longer - could be used under certain circumstances to support employment and return inflation to target, though it has drawbacks. Canada's inflation rate was at an 18-year high at 4.7% in November, data showed on Wednesday, its eighth straight month above the central bank's 1-3% control range.