The Globe and Mail reports in its Thursday, Oct. 29, edition that the Bank of Canada raised its benchmark interest rate for the first time in three years and updated its forecasts for inflation and economic growth. The Globe's Mark Rendell writes that the BOC's governing council lifted the policy rate to 2.5 per cent from 2.25 per cent. The decision was influenced by worries about rising oil prices surpassing $100 (U.S.) a barrel, and expectations of stronger economic growth due to robust consumer spending and increased business investment. The rate hike comes at a challenging time for the Canadian economy, with a sluggish housing market, high unemployment and ongoing trade tensions with the United States impacting key industries. The BOC's new inflation forecast, published Wednesday, sees headline inflation remaining above 3 per cent through most of 2027, before returning to the bank's 2-per-cent target in the middle of 2028. That's "materially higher" than what was projected in the July forecast, the bank noted. Analysts expect Wednesday's decision to signal a moderate tightening cycle, though opinions vary on how far the bank will go. RBC says, "As of now, we would expect one rate hike per quarter."