The Bank of Canada held its benchmark interest rate steady at 2.25% Wednesday, marking its third consecutive hold since a cut in October 2025.
The decision comes as escalating conflict in Iran threatens the Strait of Hormuz, a critical chokepoint for nearly 20% of global oil supply. Oil prices have surged, fueling fears of broader inflation across energy, transport, and consumer goods.
Canada's labor market weakened in February, losing 84,000 jobs-including 20,000 in British Columbia-adding pressure on policymakers to weigh employment risks against inflation.
Governor Tiff Macklem is set to address the decision in a press conference at 10:30 a.m. EST.