Bank of Canada holds interest rate at 2.25% amid energy and trade risks
Updated
Updated · The Globe and Mail · Apr 29
Bank of Canada holds interest rate at 2.25% amid energy and trade risks
9 articles · Updated · The Globe and Mail · Apr 29
The Bank of Canada kept its rate steady for a fourth time, warning future changes depend on prolonged oil price shocks and USMCA trade talks, with inflation now forecast to peak at 3% in April.
Governor Tiff Macklem said persistent high oil prices or new US trade restrictions could force rate hikes or cuts, while the bank upgraded its 2026 inflation forecast to 2.3% due to energy costs.
The Canadian economy faces mixed effects: higher oil prices benefit exports and government revenues but squeeze consumers. GDP growth is projected at 1.2% in 2026, with monetary policy remaining flexible amid ongoing global uncertainties.
With global oil shocks worsening, is the Bank of Canada underestimating future inflation?
As the USMCA review looms, how can Canada's economy withstand a potential trade fallout?
Can Canada's new energy projects shield its economy from punishing U.S. trade policies?
Do high oil prices truly benefit Canada, or do consumers bear all the pain?
Is Canada's pivot to Asian energy markets a real strategy or just a pipe dream?