Bank of Canada Sees Elevated Inflation Risks Amid High Gas Prices

The Bank of Canada's governing council assessed elevated inflation risks at its September meeting, minutes revealed on Wednesday.

Policymakers maintained their benchmark interest rate at 2.25% on September 2, with Governor Tiff Macklem signaling readiness to increase borrowing costs multiple times if inflation persisted.

The central bank's members cited persistently high gasoline prices, attributing this to conflict in Iran and heightened market expectations for the commodity.

They also noted a higher risk of inflation spreading to non-energy goods and services across Canada, but found little evidence that elevated gasoline prices were being passed through to other components.