Bank of Canada Holds Rates, Signals Possible Hikes as Trade War Clouds Outlook

The Bank of Canada held its benchmark interest rate steady at 2.25% on Wednesday, marking the seventh consecutive pause, but Governor Tiff Macklem delivered a notably hawkish shift, warning policymakers are prepared to raise rates multiple times if inflation remains elevated. With oil prices hovering around $90 per barrel due to the Iran conflict, Canada's annual inflation rate has climbed to 3%, well above the bank's 2% target.

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Finance Minister...