The Bank of Canada today held its target for the overnight rate at 2.25%, with the Bank Rate at 2.5% and the deposit rate at 2.20%. The war in the Middle East has increased volatility in global energy prices and financial markets, and heightened the risks to the global economy. The breadth and duration of the conflict, and hence its economic impacts, are highly uncertain. Prior to the war, the global economy was on pace to grow at around 3%, as expected in the January Monetary Policy Report (MPR). Economic growth in the United States has moderated but remains solid, driven by consumption and strong AI-related ... (full story)

The Bank of Canada held its benchmark interest rate at 2.25 per cent today as the economy performs below expectations but war in the Middle East threatens higher inflation. The central bank’s decision to keep to the sidelines today was widely expected but the future path for the policy rate is much less clear. Governor Tiff Macklem says in prepared remarks that the Bank of Canada is in a “dilemma” with U.S. trade uncertainty keeping the economy soft but the Iran war sending global oil prices surging and likely spurring higher inflation in the months to come. Macklem says the central (full story)