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The Bank of Canada left interest rates unchanged at 2.25 per cent on Wednesday as the Iran war rattles economies around the world.<\/p>\n
Oil prices have spiked in recent weeks as the Strait of Hormuz puts about 20 per cent of the world\u2019s oil supply in jeopardy, which risks higher prices for fuel and just about everything else.<\/p>\n
The Bank of Canada said in a statement that the war has \u201cheightened the risks to the global economy,\u201d and the full impact will depend on how long the conflict goes on for and how severe it becomes.<\/p>\n
\u201cSince the outbreak of the conflict in the Middle East, global oil and natural gas prices have risen sharply, and this will boost global inflation in the near-term,\u201d said the Bank of Canada in the statement.<\/p>\n
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\u201cIn addition to energy supply disruptions, transportation bottlenecks stemming from the effective closure of the Strait of Hormuz could impact the supply of other commodities, such as fertilizer.\u201d<\/p>\n
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This marks the second rate announcement from the central bank in 2026, and the third straight rate hold since it delivered a cut of 0.25 percentage points in October 2025.<\/p>\n
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<\/p>\n\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t1:55<\/time>Iran war price shock forces countries to ration fuel consumption<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/p>\n\t\t\t\t\t\t<\/span>
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\n\t\t\tMore on Economy<\/button>More videos<\/button>\n\t\t<\/p>\n<\/p><\/div>\nInterest rates set by commercial banks and other lenders for loans like mortgages are based on the Bank of Canada\u2019s minimum benchmark.<\/p>\n
\u201cWe will continue to assess the impact of U.S. tariffs and trade policy uncertainty, and how the Canadian economy is adjusting. We are also monitoring the unfolding conflict in the Middle East closely and assessing its impact on growth and inflation,\u201d said the Bank of Canada.<\/p>\n
\u201cAs the outlook evolves, we stand ready to respond as needed. The Bank is committed to ensuring that Canadians continue to have confidence in price stability through this period of global upheaval.\u201d<\/p>\n
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Bank of Canada Governor Tiff Macklem is scheduled to deliver remarks and answer questions at a press conference beginning at 10:30 a.m. EST.<\/p>\n
\u2013 More to come<\/em><\/p>\n<\/p><\/div>\n\n
\n\t\t© 2026 Global News, a division of Corus Entertainment Inc.\t<\/p>\n<\/div>\n
#Bank #Canada #holds #interest #rates #Iran #war #rattles #global #economies #National<\/p>\n","protected":false},"excerpt":{"rendered":"
Descrease article font size Increase article font size The Bank of Canada left interest rates unchanged at 2.25 per cent on Wednesday as the Iran war rattles economies around the world. Oil prices have spiked in recent weeks as the Strait of Hormuz puts about 20 per cent of the world\u2019s oil supply in jeopardy, […]<\/p>\n","protected":false},"author":1,"featured_media":4276,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8],"tags":[129,127,60,16,4331,39,363,637,139,126,613,17,50,502,140,4330,96],"class_list":{"0":"post-4275","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-politics","8":"tag-bank","9":"tag-bank-of-canada","10":"tag-canada","11":"tag-consumer","12":"tag-economies","13":"tag-economy","14":"tag-global","15":"tag-holds","16":"tag-interest","17":"tag-interest-rates","18":"tag-iran","19":"tag-money","20":"tag-national","21":"tag-oil-prices","22":"tag-rates","23":"tag-rattles","24":"tag-war"},"_links":{"self":[{"href":"https:\/\/www.worldpumpnews.com\/index.php?rest_route=\/wp\/v2\/posts\/4275","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.worldpumpnews.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.worldpumpnews.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.worldpumpnews.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.worldpumpnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=4275"}],"version-history":[{"count":0,"href":"https:\/\/www.worldpumpnews.com\/index.php?rest_route=\/wp\/v2\/posts\/4275\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.worldpumpnews.com\/index.php?rest_route=\/wp\/v2\/media\/4276"}],"wp:attachment":[{"href":"https:\/\/www.worldpumpnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=4275"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.worldpumpnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=4275"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.worldpumpnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=4275"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}