Bank of Canada Leaves Rate Steady, Ready for Cut or Hike -- Market Talk
Dow Jones
Yesterday
1017 ET - The Bank of Canada, as widely expected, left its benchmark interest rate unchanged, as it balances two competing forces -- upward inflation pressure due to the war in Iran, and U.S. trade policy that's casting a pall over business investment and hiring. The BOC says the policy rate at 2.25% could remain close to that level so long as its forecast proves prescient. However, it adds that a rate hike may be necessary if the war in Iran continues and energy prices stay elevated. Conversely, it said a rate cut could be required should U.S.-Canada trade talks fail and President Trump imposes new trade restrictions on Canada-made goods. (paul.vieira@wsj.com, @paulvieira)
(END) Dow Jones Newswires
April 29, 2026 10:18 ET (14:18 GMT)
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