Bank of Canada officials have signaled that despite significant uncertainties, they remain open to further interest rate hikes. The central bank's policymakers, led by Governor Tiff Macklem, raised the policy rate to 2.5% last month, the first increase in over three years. A summary of their deliberations emphasized that officials agreed additional rate hikes may be necessary.
The uncertainties cited include higher oil prices and the ongoing trade war with the US. However, these factors alone won’t necessarily prevent the bank from tightening monetary policy further. The summary of the meeting reiterated the possibility of additional rate increases if economic conditions warrant it.