Bank of Canada Faces Pressure to Hike Rates Amid High Oil Prices

Economist Mendes believes that if oil prices remain high into early to mid-October, the Bank of Canada will need to start increasing interest rates.

This is because Core inflation is currently contained, but the central bank doesn't want to be in a position where it has to make significantly higher rate hikes and businesses start raising their own prices.

The Bank of Canada's patience is wearing thin, according to Mendes, and they will need to act if oil prices remain high.