OTTAWA (Reuters) -It is becoming more likely that the Bank of Canada may need to hike its policy interest rate to 3% or higher, double its current level, to prevent soaring inflation from becoming entrenched, a deputy governor said on Thursday. 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.