CIBC says Bank of Canada faces weaker case for rate hike than Fed

CIBC economist Helen Lao argues that the Bank of Canada has a weaker case for raising interest rates compared to the U.S. Federal Reserve. According to a report published on October 6, 2026, Lao highlights that only 38% of Canadian consumer price index (CPI) components are showing inflationary pressure.

The report suggests that gasoline prices, which were higher than average, contributed about 0.8 percentage points to inflation. Additionally, fuel-related increases in airfares and travel tours added further upward pressure on prices.

While the Fed may have a stronger justification for a rate hike, the Bank of Canada’s situation appears less compelling based on current economic data.