Traders Bet on Rate Hike from Bank of Canada in October

The Bank of Canada's decision to hold interest rates steady has been reevaluated by traders and economists, who now believe there's a chance for a rate hike as early as next month.

According to LSEG Data & Analytics, the odds of a rate hold have shifted significantly since the central bank's September 2 decision, with markets now viewing the October meeting as a coin flip.

Claire Fan, senior economist at RBC, attributes this shift in odds to persistently high global energy prices tied to the war in Iran. 'If there's one thing that's really causing the pricing of the October meeting … it's oil prices,' she said.