The Bank of Canada raised its policy rate to 2.5%, matching market expectations
— its first hike since July 2023 and signaling an end to the easing cycle that
began in June 2024. Fitch’s Joshua Grundleger said September core inflation
eased but the BOC cannot ignore elevated overall inflation. Fitch expects rates
to remain at current levels through 2028, but flags upside risk to further hikes
if Iran-related geopolitical uncertainty persists and oil prices stay elevated.
