Bank of Canada governor to take questions on economic forecast after holding key interest rate at 2.25%
Posted on: Apr 19, 2026 13:30 IST | Posted by: Cbc
The cant of Canada kept its francis scott key stake value at 2.25 per cent as expected on midweek and said any changes in the rate could be small if its projections for the economy held true.
Bank of Canada governor Tiff Macklem said that, so far, higher oil prices have not been fed through to the cost of other items, and longer-term expectations for inflation haven't changed.
But Macklem — citing uncertainty caused by the war and U.S. Tariffs — said if oil prices stay high and begin pushing up inflation, the bank might have to respond with consecutive rate hikes.
The bank says the overall effect of the war on Canada will be modest. High oil prices benefit Canada by increasing export revenues while squeezing businesses and consumers.
Inflation in April is expected to shoot up to about three per cent from 2.4 per cent in March while averaging around 2.3 per cent for this year. The bank lifted its 2026 growth forecast to 1.2 per cent from the 1.1 per cent it had predicted in January.
The bank said it was assuming that U.S. Tariffs would stay unchanged while the price for a barrel of oil would dip to $75 US a barrel by mid-2027.
"If oil prices continue to increase, and particularly if they remain elevated, the risk that higher energy prices become ongoing generalized inflation increases," said Macklem.
"If this starts to happen, monetary policy will have more work to do — there may be a need for consecutive increases in the policy rate."
Global News Perspectives
In today's interconnected world, staying informed about global events is more important than ever. ZisNews provides news coverage from multiple countries, allowing you to compare how different regions report on the same stories. This unique approach helps you gain a broader and more balanced understanding of international affairs. Whether it's politics, business, technology, or cultural trends, ZisNews ensures that you get a well-rounded perspective rather than a one-sided view. Expand your knowledge and see how global narratives unfold from different angles.
Customizable News Feed
At ZisNews, we understand that not every news story interests everyone. That's why we offer a customizable news feed, allowing you to control what you see. By adding keywords, you can filter out unwanted news, blocking articles that contain specific words in their titles or descriptions. This feature enables you to create a personalized experience where you only receive content that aligns with your interests. Register today to take full advantage of this functionality and enjoy a distraction-free news feed.
Like or Comment on News
Stay engaged with the news by interacting with stories that matter to you. Like or dislike articles based on your opinion, and share your thoughts in the comments section. Join discussions, see what others are saying, and be a part of an informed community that values meaningful conversations.
Download the Android App
For a seamless news experience, download the ZisNews Android app. Get instant notifications based on your selected categories and stay updated on breaking news. The app also allows you to block unwanted news, ensuring that you only receive content that aligns with your preferences. Stay connected anytime, anywhere.
Diverse News Categories
With ZisNews, you can explore a wide range of topics, ensuring that you never miss important developments. From Technology and Science to Sports, Politics, and Entertainment, we bring you the latest updates from the world's most trusted sources. Whether you are interested in groundbreaking scientific discoveries, tech innovations, or major sports events, our platform keeps you updated in real-time. Our carefully curated news selection helps you stay ahead, providing accurate and relevant stories tailored to diverse interests.
No comments yet.