Bank of Canada relying on 'judgment' to steer policy rate through Iran war shock
The Bank of Canada is relying on judgment to steer its policy rate amid conflicting economic signals due to the war in the Middle East. The bank's governing council decided to hold the policy rate steady at 2.25% on March 18, citing uncertainty and the need to monitor the situation closely.
The Bank of Canada is using its judgment to guide monetary policy decisions. The policy interest rate was held steady at 2.25% on March 18. This decision was made due to conflicting signals from the economy, with rising energy prices and inflation on one hand, and sluggish economic growth on the other. The bank's governing council is monitoring the situation in the Middle East and its impact on the economy. They are also watching the upcoming review of the Canada-U.S.-Mexico trade agreement. The bank will release updated forecasts for inflation and the economy on April 29.
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