world-economy

Bank of Canada Maintains Rates Amid Economic Crosscurrents

The Bank of Canada held its benchmark interest rate at 2.25 percent for a fifth straight decision, citing conflicting pressures that may force either stimulus cuts or tightening measures to contain inflation. Softer-than-expected first-quarter economic data pointed to a weaker domestic picture than central bank forecasts suggested. Trade tensions with the United States and geopolitical instability in Iran created upside risks to price growth. These crosscurrents could necessitate policy action in either direction. South of the border, the Federal Reserve maintained expectations of potential rate increases before year-end despite benign core inflation readings. A robust May jobs report has pushed any Fed rate cuts further into the future, with Chair Kevin Warsh signaling the central bank remains data-dependent on timing.