The Bank of Canada is expected to hold its key rate at 2.25% at its October 28 announcement, but RSM Canada chief economist Tu Nguyen says the first rate hike since 2023 could come as early as December. September CPI rose 3.1% year over year, driven by a 27.8% jump in gasoline prices, while excluding gasoline CPI rose 2.2%, within the central bank's target range. Canada lost 68,000 jobs in September alone, which gives the bank time, but Nguyen warns that prolonged high oil prices could spill over into the broader economy. RSM's forecasts suggest measured quarter-point increases, possibly reaching 3.25% by the end of next year.
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Canadainterest ratesinflationcentral bankemployment
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Related tickers and likely impact
USD/CAD
▼ Likely negativeRelevance: medium
| Market | Currencies |
|---|---|
| Close on 10/22/2026 | 1.40091 |
| Change that session | -0.28% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
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