Bank of Canada Governor Tiff Macklem said persistently high global energy prices will push up the inflation outlook in Canada, speaking on the sidelines of the IMF meetings in Bangkok. He said the global economy has held up better than expected despite the wars in Iran and Ukraine, but that resilience is wearing thin as strategic oil reserves are being drawn down and Houthi attacks on Saudi Arabia, damage to Gulf refining capacity and the closure of the Strait of Hormuz offer little near-term relief for oil prices. Canadian inflation has held steady at 3% for two months against a 2% target, and Macklem expects the updated forecast due with the Oct. 28 rate decision to be quite a bit higher than July's projection of about 2.5% for the second half of the year. He said the central bank will weigh whether inflation will fall on its own or whether rates must rise, and pointed to the stability of the Canadian dollar as a sign of confidence. Statistics Canada releases its September inflation report on Monday.
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USD/CAD
▼ Likely negativeRelevance: low
| Market | Currencies |
|---|---|
| Close on 10/16/2026 | 1.41389 |
| Change that session | -0.32% |
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