Bank of Canada Holds Rate at 2.25%
The Bank of Canada kept the interest rate unchanged at 2.25% and indicated the possibility of future increases due to rising inflation, which reached 3%. This rise is supported by higher oil prices and a decrease in trade tensions with the United States. The bank attributed the inflation increase to the rise in Brent crude oil prices and expects that ongoing increases could lead to further interest rate hikes, with markets anticipating a 25-basis-point increase in December and a potential rise later this year. The Canadian economy remains stable amid an annual growth rate of 3.3% in the second quarter, with risks stemming from trade disputes and their impact on inflation and consumer prices.
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