Bank of Canada raises rates for the first time since 2023 amid oil price spike driven by war with Iran
The Bank of Canada raised its key rate by 0.25 percentage points to 2.5%, seeking to prevent the rise in energy prices caused by the Iranian conflict from spilling over into overall inflation. This is the first hike since July 2023: the country's economy is simultaneously contracting due to the US trade war, and the decision on further steps is complicated by uncertainty both in trade and in the Middle East.
Otabek Yusupov