Bank of Canada's Governing Council considers further rate hikes despite economic uncertainty

The Bank of Canada's Governing Council, in its summary of deliberations from the October 28, 2026, monetary policy decision, indicated that further interest rate increases might be necessary. However, the council acknowledged considerable uncertainty, particularly from higher oil prices and a trade war with the United States, and agreed to proceed carefully, assessing economic developments on a meeting-by-meeting basis. The Bank had raised its policy rate to 2.5% last month, marking the first increase in over three years.