Bank of Canada Says There Could be Further Rate Hikes

The Bank of Canada is considering further interest rate increases but will proceed cautiously due to economic uncertainties and the conflict in the Middle East. The central bank recently raised interest rates to 2.5 percent, citing concerns that high energy prices could fuel inflation, which stood at 3.1 percent in September, above the bank’s target.

• The Bank of Canada is contemplating additional interest rate hikes.
• The bank will proceed cautiously due to economic outlook uncertainty and Middle East conflict.
• Interest rates were raised to 2.5 percent from 2.25 percent on October 28.
• Concerns over energy prices accelerating inflation were cited as a reason for the hike.
• Canada’s annual inflation rate was 3.1 percent in September, exceeding the 2 percent target.
• Inflation is expected to reach 3.5 percent by year-end and remain above 3 percent until mid-2028.