Bank of Canada holds, signals willingness to look through energy price shock
As markets had overwhelmingly anticipated, the Bank of Canada left its policy settings on hold this morning, and expressed concern over persistent weakness in the Canadian economy, suggesting that policymakers are more concerned about downside risks to growth than upside risks to inflation as the world economy faces yet another supply shock. Officials led by Governor Tiff Macklem maintained the policy rate at 2.25 percent for a third consecutive meeting after delivering nine cuts between June 2024 and September 2025. In the official statement setting out the decision, policymakers warned “With recent data pointing to weaker economic activity and uncertainty...