BoC maintains policy rate for fifth straight meeting as wage growth and energy prices keep inflation risks elevated.
The Bank of Canada is set to keep its benchmark interest rate at 2.25% on Wednesday, marking the fifth consecutive meeting without a change. Policymakers cite persistent inflation pressures, including wage growth of 3% to 3.5%, despite signs of economic slowing.
At its April meeting, the BoC held rates steady but avoided a dovish tone, emphasizing data dependency. Governor Tiff Macklem noted inflation expectations may be less anchored than pre-pandemic, while energy prices and trade tensions pose upside risks.
Markets expect no near-term rate cuts, with the BoC leaving the door open for further tightening if inflation proves more persistent than anticipated.