BoC expected to maintain current rates throughout the year even as war-driven inflation poses risks: Reuters survey

Bank of Canada Expected to Maintain Interest Rates Despite Global Tensions

Most economists surveyed by Reuters anticipate that the Bank of Canada will leave its overnight rate unchanged both next week and throughout the remainder of the year. This outlook remains steady despite inflationary pressures stemming from ongoing conflict in the Middle East. As a net exporter of oil, Canada’s economy may be less vulnerable than others to the recent sharp rise in global crude prices, which soared by nearly 70% following the onset of the U.S.-Israel conflict with Iran at the end of February. Nevertheless, elevated energy costs continue to impact consumers worldwide, contributing to inflationary concerns that have already affected Canada’s economic landscape.