The Globe and Mail reports in its Wednesday edition that former Bank of Canada governor Mark Carney on Monday warned that central banks may cut interest rates less than what many people expect. The Globe's Mark Rendell writes that according to Mr. Carney, the monetary policy will be adjusting to a new era that is defined by structurally higher inflation. Mr. Carney stated that central bankers are likely to begin lowering interest rates this year as inflation continues to decline. However, he added that these cuts are going to be slower and shallower, and rates are unlikely to return to the prepandemic lows. Mr. Carney also noted that in the medium term, rates are going to be higher, and this is mainly due to structural factors that have a significant impact on most companies, individuals and households. This echoes remarks by current BOC Governor Tiff Macklem. When asked about the likely trajectory of rate cuts after the bank's last rate decision, in March, Mr. Macklem said that "it's very safe to say we're not going to be lowering rates at the pace we raised them." The BOC's next rate decision is on Wednesday. Expectations are for the BOC to keep its benchmark rate steady at 5 per cent for the sixth consecutive time.