Analysis: Amid the sharp rise in oil prices, Canada's basic inflation remains weak.

Royce Mendes, Managing Director of Capital Markets Macro Strategy at Huafu Cooperation Bank, stated that Canada's underlying inflation is "very weak" in the face of rising oil prices. The average of core inflation indicators favored by the Bank of Canada only rose by 0.09% in February compared to the previous month. Mendes said, "The Bank of Canada should be able to ignore the rise in energy prices for some time." He added that Huafu Cooperation Bank predicts that the Bank of Canada will keep its policy rate of 2.25% unchanged until as far as 2027.