BANK OF CANADA MACKLEM EXPECTS HIGHER INFLATION OUTLOOK AS OIL PRICES REMAIN ELEVATED

What happened: Bank of Canada Governor Tiff Macklem said the central bank expects to revise its inflation forecast higher at its upcoming rate announcement, as Middle East conflict continues and oil prices stay elevated. Key numbers: Brent crude around US$110, WTI US$101, versus a July forecast of about US$75 for Brent in Q3. Inflation at 3 per cent in August. Why it matters: Macklem said the bank will weigh whether inflation returns to its 2 per cent target on its own or requires rate increases, and warned that prolonged high energy prices raise the risk inflation becomes more generalized.

Bank of Canada Governor Tiff Macklem said the central bank expects to revise its inflation forecast higher at its upcoming rate announcement, as Middle East conflict continues and oil prices stay elevated.

Macklem said the bank will weigh whether inflation returns to its 2 per cent target on its own or requires rate increases, and warned that prolonged high energy prices raise the risk inflation becomes more generalized.