BoC recap: Risks are shifting as Oil prices and US trade actions complicate outlook
The Bank of Canada (BoC) left its overnight interest rate unchanged at 2.25% on Wednesday, as widely anticipated, but delivered a more cautious message as inflation risks increased and the recovery became harder to assess. Governor Tiff Macklem said multiple rate increases could be required if inflation remained a problem, while stressing that decisions would be guided by the inflation outlook and the risks surrounding it.
The bank’s statement highlighted a difficult combination of subdued labour demand, continued excess supply and rising uncertainty about the sustainability of the economic rebound. New US tariffs and the threat of further trade action are clouding growth prospects, while the ongoing Middle East conflict is keeping energy prices higher for longer.
https://www.fxstreet.com/news/boc-recap-risks-are-shifting-as-oil-prices-and-us-trade-actions-complicate-outlook-202609021702?utm_source=onesignal&utm_medium=push&utm_campaign=forex
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3September 2, 2026 651
