Oct 29, 2026 · 6 min · 8 segments
On 28 October the Bank of Canada raised interest rates for the first time since July 2023, with core inflation around 2%. Minutes earlier, Europe's benchmark gas price briefly touched €100 per…
That's its first increase since July 2023.
Here's the striking part.
Headline inflation is higher, at about 3%, and energy is a big part of the gap.
The old rule was that central banks look through an energy shock because higher rates can't produce more gas.
Governor Tiff Macklem said higher energy prices and pass-through increase the persistence of inflation.
And he said there could be a need to raise rates further, but the bank will proceed carefully.
Reuters reported that the benchmark gas price, Dutch TTF, briefly touched 100 euros per megawatt hour yesterday afternoon.
That's the first time since December 2022.
Euro area inflation was about 3.8% in September.
Energy prices were up nearly 19% on a year earlier.
Core inflation was 2.5%.
Why does this matter for a long-term owner? because when central banks tighten into a supply shock, the usual cushion gets thinner.
In a normal slowdown, rates fall and bonds help.
In an energy-led slowdown, rates may be rising.
Bonds and equities can fall together, as they did in 2022.
Gas often sets the price of electricity in European power markets.
That reaches industrial earnings, floating-rate private credit, and government budgets.
That's its first increase since July 2023.
Here's the striking part.
Headline inflation is higher, at about 3%, and energy is a big part of the gap.
The old rule was that central banks look through an energy shock because higher rates can't produce more gas.
Governor Tiff Macklem said higher energy prices and pass-through increase the persistence of inflation.
And he said there could be a need to raise rates further, but the bank will proceed carefully.
Reuters reported that the benchmark gas price, Dutch TTF, briefly touched 100 euros per megawatt hour yesterday afternoon.
That's the first time since December 2022.
Euro area inflation was about 3.8% in September.
Energy prices were up nearly 19% on a year earlier.
Core inflation was 2.5%.
Why does this matter for a long-term owner? because when central banks tighten into a supply shock, the usual cushion gets thinner.
In a normal slowdown, rates fall and bonds help.
In an energy-led slowdown, rates may be rising.
Bonds and equities can fall together, as they did in 2022.
Gas often sets the price of electricity in European power markets.
That reaches industrial earnings, floating-rate private credit, and government budgets.
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