Stock markets across Canada and the U.S. tumbled on Wednesday as oil prices rose and fighting resumed in the Middle East. He added that the effect on oil prices can translate into inflationary pressure and higher interest rates, which over time will weigh on global markets. Higher rates can keep a lid on inflation, but they can also slow the economy and undercut prices for stocks and other investments. Bergeron said higher commodity prices were lifting the energy sector, while more growth-oriented sectors like banks and industrials were feeling the effect of higher inflation risks. “There was no surprise; I think the Bank of Canada is firmly on the sidelines and it doesn’t seem to be much of a surprise to financial markets,” Bergeron said.