Bank of Canada Officials Weigh Trade War and Energy Price Impact

The Bank of Canada's rate-setting body is grappling with a complex dilemma, according to Deputy Governor Toni Gravelle. The central bank is trying to balance the impact of the trade war against the inflation effects of high energy prices.

Gravelle stated that officials are having 'very vigorous, deep debates' about the situation. They're concerned that higher fuel costs will eventually pass through to other goods and services, creating broader inflation pressures.

The dilemma is being felt on September 29, 2026, at the Bloomberg Canadian Finance Conference in New York. Gravelle emphasized the complexity of the situation.