BoC Governor Macklem says if oil prices keep rising and stay elevated "there may be a need for consecutive increases in the policy rate"

BoC Governor Macklem's remarks indicate a cautious balancing act ahead for the central bank.

Newsquawk StaffPublished On the live feed at 3 more headlines followed before this page went public
Newsquawk headlinesUTC

US President Trump could turn to military action without an Iran agreement ahead of the China trip, Axios reports citing US officials

CF Industries Holdings (CF) Q1 2026 (USD): EPS 3.98 (exp. 2.63), Revenue 1.99bln (exp. 1.84bln)

BoC Governor Macklem says if oil prices keep rising and stay elevated "there may be a need for consecutive increases in the policy rate"

IRGC Navy Political Affairs Official says we will impose our control over the Strait of Hormuz, and any attack will be met with a plan beyond the enemy's calculations, Al Jazeera reports

Pepsi (PEP) raises quarterly dividend 4% to USD 1.48/shr

Open the platform and use it. The whole workspace is free to try, with no signup and no card. When you want the headlines arriving live instead of on a delay, Newsquawk Pro is £24.99 for 7 days.

Free. No signup, no card.
  • If the United States imposes significant new trade restrictions on Canada, we may need to cut the policy rate further to support economic growth. 
  • Alternatively, if oil prices continue to increase, and particularly if they remain elevated, the risk that higher energy prices become ongoing generalized inflation increases. If this starts to happen, there may be a need for consecutive increases in the policy rate
Context

Rising oil prices could compel the Bank of Canada to consider consecutive interest rate hikes to combat sustained inflation, while potential trade restrictions from the U.S. could necessitate rate cuts to support growth. Traders should watch for shifts in market expectations around the rate path as these factors evolve.

Related headlines

The whole workspace, free to try.

Try it free