Bank of Canada Maintains Interest Rates Amid Inflation Concerns
The Bank of Canada (BoC) is expected to maintain its key overnight rate at 2.25% through 2026, according to a Reuters poll of economists. Despite rising inflation risks due to a conflict-driven increase in energy prices, the BoC is likely to hold rates steady as economic activity remains sluggish. The Canadian economy, which recently entered a technical recession, showed robust job gains in May, providing some positive news. However, the persistent energy shock from the U.S.-Israeli conflict with Iran has pushed inflation to 2.8% in April, up from 2.4% in March. The BoC's decision to keep rates unchanged is supported by a decline in core inflation, indicating weak demand. 
