Content and data provided by various third parties and Fidelity - Terms of Use
Print.Print
Small font size A Larger text size A Largest text size A

Bank of Canada "Should Be Able To Look Through the Rise In Energy Prices For Some Time" Based On Today's CPI Data, says Desjardins

BY MT Newswires | ECONOMIC | 09:43 AM EDT

09:43 AM EDT, 03/16/2026 (MT Newswires) -- The latest inflation data reinforces the view that underlying inflation was "very weak" heading into the oil price shock and, as a result, the Bank of Canada "should be able to look through the rise in energy prices for some time", said Royce Mendes over at Desjardins on Monday.

Desjardins continues to believe that central bankers will leave rates unchanged until well into 2027. "With the economy on shaky ground at the moment, officials may want to push back against market pricing for more than one full rate hike this year," it added.

Most importantly, Mendes said, the BoC's preferred measures of inflation looked "very tame," signaling that underlying inflationary pressures were soft once again in February. He noted the average of the core median and trimmed mean metrics was up just 0.09%, leaving the three-month annualized rate decelerating to 1.0% from 1.2% in January. He also noted trimmed mean services excluding shelter rose just 0.08%, the weakest monthly increase since January 2020. That saw the three-month annualized rate of that stripped-down metric falling to just 1.8%, the slowest pace since early 2020.

MT Newswires does not provide investment advice. Unauthorized reproduction is strictly prohibited.

More Fixed Income News

All Fixed Income News

In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

© 1998 – 2014 FMR LLC.

All rights reserved.
fir_news_article