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BoC Opens the Door to Rate Hikes: What It Means for Your Mortgage

  Published September 4, 2026 The Bank of Canada held its policy rate at 2.25% on September 2 — the seventh straight hold — but Governor Tiff Macklem didn't sound like a central banker done for the year. He told reporters the Bank is "prepared to raise interest rates, and if it takes more than one increase, we're prepared to do that," if inflation stays too high. That's a real shift in tone, and it lands right as a wave of Canadians hit their mortgage renewal date. Here's what changed, who's forecasting what, and what it actually means for your payment. Why the Bank Suddenly Sounds Hawkish Canada's annual inflation rate has climbed to around 3% — a full point above the Bank's 2% target — and the Bank is pointing squarely at energy prices. Oil has stayed elevated because of the Iran conflict and disruption near the Strait of Hormuz, pushing gas prices up and dragging headline CPI with it. Core inflation, which strips out food and energy, is still s...
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Fuel Turbulence: How Canadian Airlines Are Navigating Soaring Jet Fuel Costs

 


Canadian airlines are facing a sharp surge in jet fuel costs, prompting carriers like Air Canada and Air Transat to raise fares and adjust fuel surcharges as hedging strategies prove insufficient. The spike—driven largely by Middle East conflict and supply disruptions—has forced airlines to balance cost control with maintaining passenger demand. 


Rising Fuel Costs Shake the Industry

Canadian airlines are grappling with jet fuel prices that have surged dramatically due to geopolitical tensions, particularly the war in the Middle East and disruptions in the Strait of Hormuz. Jet fuel has climbed as much as 40% in a matter of weeks, far outpacing crude oil increases.

How Airlines Are Responding

  • Higher Ticket Prices:
    Air Transat and Air Canada have begun raising fares, especially on routes with strong demand or limited competition. Fuel surcharges on European flights have already increased.

  • Hedging Isn’t Enough:
    Even airlines that hedge fuel costs are feeling the pressure. Jet fuel prices have doubled since the Iran conflict began, exposing the limits of hedging strategies and forcing carriers to pass costs to consumers.

  • Industry-Wide Adjustments:
    Some airlines are adding new fees, while others are considering capacity cuts to offset rising operating expenses. Fuel remains one of the largest cost drivers in aviation, leaving few alternatives. 

The Bigger Picture

The rapid escalation in fuel prices is reshaping airline economics globally, and Canadian carriers are no exception. As geopolitical instability continues, travelers may see further fare increases, especially on long-haul and peak-season routes.


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