BANK OF CANADA SEES SHARPLY HIGHER INFLATION OUTLOOK AS OIL SURGES , MACKLEM SAYS

What happened: Bank of Canada Governor Tiff Macklem said the bank expects to raise its quarterly inflation forecast significantly this month due to persistently high crude oil and petroleum product prices. Why it matters: Macklem said the risk that inflation broadens and becomes more persistent has risen, and the bank is prepared to adjust monetary policy as needed. Markets are not pricing a near-term move but expect increases next year.

Bank of Canada Governor Tiff Macklem said the bank expects to raise its quarterly inflation forecast significantly this month due to persistently high crude oil and petroleum product prices.

Macklem said the risk that inflation broadens and becomes more persistent has risen, and the bank is prepared to adjust monetary policy as needed. Markets are not pricing a near-term move but expect increases next year.