OTTAWA, Sept. 2 (Xinhua) -- The Bank of Canada announced on Wednesday that it will maintain its benchmark interest rate at 2.25 percent.
Citing recent data, the central bank said in a press release that there was a broadening recovery in Canada's economy, however, uncertainty is high and new U.S. tariffs and threats of further action pose risks to the sustainability of the recovery.
The central bank said that with the Middle East conflict still ongoing and little progress in reopening the Strait of Hormuz, upside risks to its inflation forecast have increased.
The longer that high oil prices and elevated refinery margins persist, the greater the risk of spillover to the prices of other goods and services, the bank added.
New U.S. tariffs and Canadian counter-tariffs will also raise costs for some businesses and could feed into consumer prices over time, said the Bank of Canada.
