Bank of Canada Says There Could be Further Rate Hikes
The bank expected inflation to reach 3.5 percent by the end of this year and remain above 3 percent through much of 2027.
TL;DR
- 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.