Market Wire, North America

As markets had overwhelmingly anticipated, the Bank of Canada left its policy settings on hold this morning, while pointing to signs of renewed economic growth and gradually easing inflation against a backdrop of persistent risks from the Middle East conflict and US trade tensions. Officials led by Governor Tiff Macklem maintained the policy rate at 2.25 percent for a sixth consecutive meeting after delivering nine cuts between June 2024 and September 2025. In the official statement setting out the decision, policymakers took a more optimistic view on the outlook, highlighting recent evidence of solid consumer spending, a stabilisation in housing...

There was little evidence of higher energy costs broadening to raise prices for other goods and services in Canada last month, with underlying inflation pressures holding steady, further lowering the likelihood of a rate hike from the Bank of Canada by year end. Data released by Statistics Canada this morning showed core inflation—which strips out food and energy prices—and is computed as the average of the two price measures now preferred by the central bank (trim and median), remaining unchanged in May from a month earlier, rising 2.1% on a year-over-year basis. On a headline all-items basis, prices increased 1.0%...