Canada’s central bank has raised its key interest rate to 2.5 per cent, its first hike since 2023, citing rising oil prices driven by the ongoing war, Reuters reports.
The Bank of Canada has maintained that the economy faces two competing pressures: growth is being hampered by President Donald Trump’s trade war, but inflation is rising due to the US conflict with Iran.
The bank said Wednesday that Canadian businesses are “adapting” to the changing trade relationship with the US, suggesting growth could be stronger than initially expected.
