Bank of Canada May Hike Rates

Canada’s central bank kept its key policy rate unchanged, but said it could raise rates if needed.
Officials said Middle East conflict could lift gasoline prices and boost inflation short term, with spillover risks contained.
The governor said policymakers would look through immediate inflation impacts, but act if energy costs stayed high.
He also said rates could be cut if energy prices fell and the economy weakened further.
After the decision, the Canadian dollar slipped slightly, while markets increased bets on a later rate hike.
I’m watching Canada’s central bank balance inflation risks from higher energy prices against a weak economy. Policymakers are holding steady for now, but they’re signaling flexibility if conditions change.