Bank of Canada Governor Macklem says Canada hasn't raised rates yet, but the longer it goes, the harder it is to look through increases in energy prices

Governor commentary framed around the difficulty of looking through energy-driven price increases is the classic central-bank staging for a hawkish tilt: officials have historically used second-round and expectations language to soften the ground before tightening, and the distinction that matters is whether the bank treats an energy shock as a relative price shift to be looked through or as an inflation-expectations risk to be countered. Macklem's framing leans toward the latter, and in past episodes of this kind that rhetorical shift has preceded action by a meeting or two rather than signalling an imminent move. The channel is the front end of the Canadian curve and the rate differential against the US, which is where CAD sensitivity to BoC repricing has typically concentrated. Prior form under this Governor has been to flag pivots in advance rather than surprise, so the language itself is the tell. What bears on the read next is whether other Governing Council members echo the energy-persistence framing and how the next domestic inflation prints sit against the bank's tolerance for looking through supply-side shocks.