Bank of Canada warns of incoming inflation

Bank of Governor Tiff Macklem told reporters at a press conference on Wednesday that an increase in inflation may be around the corner amid rising oil prices.

Governor Tiff Macklem announcing the interest rate decision: X

The Bank of Canada will hold its key policy interest rate at 2.25 per cent for the fourth consecutive time but Governor Tiff Macklem warns that an increase in inflation may be around the corner.

The central bank published its first monetary policy report since January, which projects inflation will peak around three per cent this month, before declining to its two per cent target early next year.