What specific condition did Bank of Canada Governor Tiff Macklem cite for potentially implementing consecutive interest rate hikes?

Governor Tiff Macklem stated that if elevated oil prices 'embed themselves in broader price pressures,' then monetary policy 'will have more work to do — there may be a need for consecutive increases in the policy rate.'

How did the timing of Macklem’s remarks and Trump’s Iran blockade comment jointly affect Canadian bond markets?

Macklem’s conditional warning about consecutive rate hikes—delivered at 10:30 a.m. Ottawa time—coincided with an Axios report that Donald Trump would not lift a naval blockade of Iran’s ports until a nuclear deal was secured, causing global oil prices to extend gains; this dual catalyst triggered an immediate sell-off in Canada’s benchmark two-year note, pushing its yield higher.

Trump Blockade Threat, Macklem Comments Cause Canada Bonds to Tumble

Apr 29, 2026

Bank of Canada Governor Tiff Macklem warned of potential rate hikes if high oil prices drive inflation, amid a spike caused by US threats against Iran. Canadian bonds tumbled as markets reacted to the energy-driven economic uncertainty.

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