The Bank of Canada’s Governing Council decided to keep the policy interest rate unchanged at 2.25 % as it evaluates the impact of the war in Iran on the economy and inflation. The council noted that the conflict has pushed global energy prices sharply, which is expected to lift Canadian inflation in the short term. While growth in Canada is projected to expand in 2026, the energy shock introduces upside risk to inflation and downside risk to growth. The decision reflects the council’s view that inflation is near target and core measures show limited pressure, but that the situation remains uncertain. The bank will continue to monitor the conflict, trade policy, and incoming data and keep options open to adjust rates if needed.
© Bank of Canada, 2019‑ – Source: https://www.bankofcanada.ca .
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