Bank of Canada keeps rate at 2.25%

The Bank of Canada kept the interest rate unchanged at 2.25%, with indications of a possible hike again if inflationary pressures persist, amid the rapid rise in inflation to 3% and oil prices surpassing $90 a barrel. Governor Tiff Macklem confirmed that the primary cause of rising inflation is the increase in oil prices, while the impact of U.S. tariffs on the Canadian economy has been limited. Economists anticipate that markets may expect a potential interest rate increase by December, as the Canadian dollar and government bonds continue to strengthen.

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