News Analysis
The Bank of Canada held its key interest rate steady for the sixth time in a row and took on a noticeably more optimistic tone compared to previous meetings.
Bank of Canada Governor Tiff Macklem told reporters on July 15 that Canada’s economic growth has resumed and inflation looks set to decline alongside oil prices. Unlike previous meetings, Macklem also notably did not warn of the potential need for several interest rate increases to tamp down on inflation.
But Macklem said uncertainty remains elevated globally, and noted that oil prices have once again risen in recent days amid the escalating U.S.-Iran war. He kept the door open for more potential interest rate increases, saying the Bank is “prepared to adjust monetary policy as needed.”
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