BoC Minutes: Little Sign Higher Oil Prices Spreading Broadly, Risks Remain
The Bank of Canada's July meeting minutes reveal policymakers saw scant evidence that elevated oil prices were feeding into other prices, though they warned prolonged high energy costs could increase inflation risk.
The Bank of Canada released minutes from its July 15 policy meeting, showing members assessed that the pass-through from elevated crude prices to broader consumer prices remained limited.
Policymakers reaffirmed their commitment to prevent a lasting inflationary impulse from energy costs, agreeing to reiterate they would not allow higher oil prices to cause lasting inflation.
However, they cautioned that the longer oil prices stay elevated, the greater the risk that their inflationary impact could spread more broadly across goods and services.
Source: First Squawk