Bank of Canada holds interest rate
The Bank of Canada held its principal interest rate at 2.25 per cent today.
However, it’s warning that that rising oil and natural prices caused by the war in Iran will push up inflation in the short term.
“Canada’s economy is dealing with a lot. And now, we face more volatility,” Bank of Canada Governor Tiff Macklem said in his opening remarks at Wednesday’s rate announcement.
Data released by Statistics Canada this week shows inflation dropped to 1.8 per cent in February from 2.3 per cent in January. Both reports represent data largely collected before the U.S.-Israeli strikes.