Bank of Canada Cites Persistent Inflation Risks
Bank of Canada minutes reveal governors expected inflation to remain elevated due to Middle East tensions and trade friction. Officials kept rates on hold at 2.25 percent.
Insights:
Canada's central bank held its key policy rate at 2.25% during its September 2 decision, warning that inflation would remain elevated in the near term. The policy hold came as policymakers pointed to persistent geopolitical risks and trade pressures. Governor Tiff Macklem indicated officials are prepared to raise borrowing costs multiple times if price pressures persist.
