The Bank of Canada increased its overnight policy-rate target by 25 basis points to 2.50% on October 28. Governor Tiff Macklem said it was the first increase since July 2023.
Persistent energy costs raise inflation concerns
The bank said higher energy prices risk spreading into the prices of other goods and services. It projects inflation at or above 3% through much of 2027 before returning close to its 2% target by mid-2028.
Officials said further rate increases could be needed, while committing to proceed carefully and decide one meeting at a time amid uncertainty over the Middle East and Canada-US trade relations.
Sources: the Bank of Canada announcement and governor’s opening statement, alongside the BlockBeats English report and original Chinese flash, published October 28, 2026, at 13:51 UTC.