BoC Keeps Interest Rate Unchanged as Governors Warn of Possible Future Hikes

The Bank of Canada's September interest rate decision saw its key policy rate kept at 2.25%, but Governor Tiff Macklem warned that policymakers are prepared to raise borrowing costs multiple times if inflation remains too high.

Minutes from the meeting revealed that governors agreed inflation was likely to remain elevated in the near term, with little evidence that higher gasoline prices were passing through to other goods and services. However, members concluded that given the current situation, they would be prepared to take action.

In a related development, the US Census Bureau reported that retail and food services sales in the United States advanced by 1.2% in August compared to last month's figures, landing at $773.9 billion. Meanwhile, compared to the corresponding month in 2025, the figure went up 6.0%

Fed Chair Warsh also weighed in on the inflation situation, stating that 'inflation is too high and has been for too long' and that 'the predominant focus of the Fed is on price stability'. He added that inflation risks are to the upside and labour risks are roughly balanced.