BREATHE EASY FOR NOW BUT ECONOMIST SAYS INTEREST RATE HIKES COMING

What happened: RSM Canada Chief Economist Tu Nguyen expects the Bank of Canada to hold its key rate at 2.25% next Wednesday, with a first hike since 2023 possible as early as December. Key numbers: CPI rose 3.1% year over year in September, up from 3% in August. Gasoline rose 27.8% year over year and energy 19%. Excluding gas, CPI rose 2.2%. Why it matters: Nguyen said the central bank has room to wait but will hike very soon, and warned that prolonged high oil prices could spill over into the broader economy, which she said is what worries the central bank.

RSM Canada Chief Economist Tu Nguyen expects the Bank of Canada to hold its key rate at 2.25% next Wednesday, with a first hike since 2023 possible as early as December.

Nguyen said the central bank has room to wait but will hike very soon, and warned that prolonged high oil prices could spill over into the broader economy, which she said is what worries the central bank.