Plus: Cliffs versus Mélanie Joly, again

The Bank of Canada is likely to hike interest rates for the first time in more than three years as policymakers grow increasingly concerned about the inflation risk posed by the cost of energy.

Bank of Canada Governor Tiff Macklem may have boxed himself into an interest-rate hike next week after his hawkish commentary convinced traders a hike is all but certain.

Some bond-market watchers believe China is disguising the full extent of its ownership of US debt by holding hundreds of billions of dollars of securities through accounts in Canada. That idea is off base, according to research from one major Canadian bank.

Canada’s federal government will unveil its spending plans on Nov. 5 as the country’s budget watchdog says new measures, including a major tax incentive for businesses, will cost more than an oil-driven revenue windfall brings in.

More economists and traders expect the Bank of Canada to hike interest rates next week after the central bank’s latest surveys showed inflation expectations rising.

Bank of Canada surveys showed inflation expectations moving higher, and more evidence that firms plan to pass on higher input costs to customers.

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.