Brenda Yu

Economists expect no change at Wednesday’s policy meeting, despite new inflation risks tied to the Iran conflict.
War-driven oil price ↑ could lift costs for food, consumer goods, and transportation, adding inflation pressure.
Weak economy counters inflation fears: February unemployment ↑6.7% and the economy shed more than 80,000 jobs.
Markets saw just over 90% odds of a hold
 some economists forecast the policy rate stays at 2.25% through 2026

BoC Keeps Rates Steady

Bank of Canada held rates at 2.25% as expected, citing weaker growth, soft labor market, and rising inflation risks globally.

Middle East conflict pushed oil and gas prices higher, tightening financial conditions, increasing volatility, and complicating policy outlook amid uncertainty.

After aggressive cuts from 2024 to 2025, Bank signals data dependence; next decision expected April 2026 as markets watch closely.