Here’s what Tiff Macklem said after the BoC’s rate hike
“Developments in the Middle East and Canada-US trade relations both remain fluid.”
Consumer Price Index (CPI) inflation has held near 3% since April and is projected to reach roughly 3.5% by year-end, with the 2% target not expected until mid-2028.
CPI excluding gasoline remains at 2.2% and core inflation sits near 2%.
“The longer energy prices remain high, the more likely it is these costs will spill over to consumer prices more broadly,” Macklem said.
Oil, trade tensions, and the inflation risk that tipped the Bank’s hand
Governing Council weighed that risk against solid economic data. Gross domestic product (GDP) grew 3.3% in the second quarter, with preliminary indicators pointing to about 2% growth in the third quarter, per the Bank of Canada’s October 2026 Monetary Policy Report.
