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Bank of Canada holds key interest rate at 2.25%
The central bank said growth is rebounding and inflation should ease, while 36 Reuters economists expected the hold.
- The Bank of Canada held its benchmark overnight rate at 2.25% on Wednesday for the sixth consecutive time, with the Bank Rate at 2.5% and deposit rate at 2.20%.
- Governing Council judged the current rate appropriate as the economy rebounds from a weak first quarter, when growth stalled amid trade policy uncertainty and Middle East conflict disruptions.
- Canada's economy is projected to grow 2.5% annualized in the second quarter, while inflation rose to 3.2% in May driven by elevated gasoline prices from Middle East tensions.
- Governor Tiff Macklem noted inflationary pressures remain "volatile and highly dependent on events in the Middle East," though the bank expects inflation to ease gradually toward its 2% target.
- Financial markets expect the central bank to remain on hold through the fall before raising the policy rate by a quarter-point in December as economic growth gains momentum.
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73 Articles
73 Articles
Coverage Details
Total News Sources73
Leaning Left26Leaning Right7Center18Last UpdatedBias Distribution51% Left
Bias Distribution
- 51% of the sources lean Left
51% Left
L 51%
C 35%
14%
Factuality
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