Bank of Canada deliberations show further rate hikes are possible

The Bank of Canada's governing council may need to raise interest rates further, according to a summary of deliberations released Tuesday behind last month's quarter-point increase to 2.5 per cent, its first hike since 2023. Members said monetary policy cannot lower global energy prices but can stop them from becoming broad, persistent inflation, and they will decide one meeting at a time amid uncertainty over the Middle East war and Canada-U.S. trade. The bank expects annual inflation of 3.5 per cent at year-end, staying above three per cent through much of 2027. Its next scheduled rate decision is December 9.