Bank of Canada's Macklem says sustained oil spike could prompt back-to-back rate hikes

The warning stops short of a baseline forecast, with Macklem stressing that consecutive increases would require a lasting rise in oil prices rather than a temporary shock.

Summary

Bank of Canada's Macklem said a sustained spike in oil prices could still force back-to-back interest-rate hikes, while emphasizing that such an outcome is not the base case. The remark underscores how persistent energy-driven inflation can complicate monetary policy, as central banks weigh whether a commodity shock is temporary or broad enough to threaten price stability.

Terms & Concepts
  • rate hikes: Central bank increases in interest rates.
  • base case: The main scenario policymakers currently expect.
  • inflation: A broad rise in consumer prices over time.