Bank of Canada Governor Tiff Macklem said he’s seeing more evidence that higher oil prices are supporting economic growth in Canada, and expects the bank will have a higher inflation forecast at the end of the month.

Two key economic data releases Monday could make or break the case for a Bank of Canada interest-rate hike later this month.

A majority of Canadians expect the rate of inflation to increase over the next 12 months, a potentially worrying sign for the Bank of Canada as it weighs interest-rate hikes.

The Bank of Canada’s second in command said the central bank is limited in what it can do to address home prices, arguing that the housing market should remain an input and not a target of interest rate decisions.

A senior Bank of Canada official said the central bank’s rate-setting body is in a “dilemma” and having spirited discussions about how to balance the impact of the trade war against the inflation effects of high energy prices.

A senior Bank of Canada official said the central bank’s rate-setting body is in a “dilemma” and having spirited discussions about how to balance the impact of the trade war against the inflation effects of high energy prices.

National Bank Financial’s chief economist sees Canada starting to take business investment seriously after a decade of what he calls “stagnant” growth, and is forecasting a surge in foreign capital.

Economists are boosting their forecasts for Canada inflation, now saying price pressures won’t return to the central bank’s 2% target until the third quarter of next year.

The Bank of Canada is likely to raise interest rates at its next two meetings as the Middle East conflict creates the risk of broader price pressures, a senior macro strategist at Manulife said.

Canada’s budget watchdog says the federal government won’t balance its operational expenses against revenues until 2029-30, two years later than Prime Minister Mark Carney said it will.

Bank of Canada Governor Tiff Macklem said policymakers don’t want to be late to hike interest rates should inflationary pressures prove to be stubborn.

The Bank of Canada’s governing council warned that it may need to hike interest rates, saying the longer gasoline prices remain elevated, the more likely that would pass through to other goods and services.

Prime Minister Mark Carney is expanding the scope of a major investment tax write-off, adding oil and gas pipelines, oil production equipment, mining property and more to the list of assets eligible for immediate expensing in Canada.

Canada will prioritize requests for income tax clarity related to investments of at least C$1 billion ($720 million), a move meant to help international firms seeking to deploy capital in the nation.

The Bank of Canada held interest rates steady for a seventh consecutive meeting, but emphasized that an escalation of the trade war with the US and the Iran conflict are fueling new inflation concerns.

Finance Minister Francois-Philippe Champagne said positive investor sentiment is helping keep Canada’s borrowing costs in check despite a global bond rout, arguing the country’s finances are strong enough to handle the volatility.

The Bank of Canada is likely to hold borrowing costs steady, as an escalation in the trade war with the US threatens the economic recovery while adding to inflation risks.

Canada’s top economists told the country’s finance minister that the damage from the spiraling trade war with the US should be manageable, potentially bolstering Prime Minister Mark Carney’s case for walking away from the talks.

Canada’s current account surplus came in at more than twice economists’ expectations as crude oil and bitumen exports jumped to a record, giving the country a trade cushion ahead of an intensifying tariff dispute with the US.

Canadians wanted their prime minister to stand tough and not sign a bad trade deal with the US. But the collapse of talks, and the escalation of the tariff war, will come at a price.