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Bank of Canada Relying on 'Judgment' to Steer Policy Rate Through Iran War Shock
Policy makers said they will rely on judgment and risk management as they weigh higher gasoline prices against a weaker economy.
- Bank of Canada Governor Tiff Macklem and the Bank are relying on judgment to guide monetary policy, holding the policy rate at 2.25 per cent following their March 18 meeting amid Middle East uncertainty.
- Macklem and the Bank face a "dilemma" as spiking energy prices threaten to fuel inflation while Canada's economy is underperforming, creating conflicting signals for decision-makers.
- According to deliberations released Wednesday, the Bank decided they had "some flexibility" and agreed to "keep options open" while monitoring the Iran war's duration.
- Beyond the Middle East, the Bank is also monitoring the upcoming Canada-U.S.-Mexico agreement review to determine if tighter or looser monetary policy is necessary.
- Economists widely expect the Bank to maintain the 2.25 per cent rate at its next decision on April 29, when officials will also release updated economic and inflation forecasts.
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13 Articles
13 Articles
The Bank of Canada's monetary policy officials rely more on their own analysis to determine the direction of the policy rate in the face of conflicting economic signals related to the Middle East war.
·Montreal, Canada
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The Toronto Star+3 Reposted by 3 other sources
Bank of Canada relying on ‘judgment’ to steer policy rate through Iran war shock
OTTAWA - Monetary policy-makers at the Bank of Canada are relying more heavily on their own reasoning to chart a course for the policy interest rate through conflicting economic signals
·Toronto, Canada
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Winnipeg Free Press+3 Reposted by 3 other sources
Bank of Canada relying on 'judgment' to steer policy rate through Iran war shock
Breaking News, Sports, Manitoba, Canada
·Winnipeg, Canada
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Bank of Canada agreed Iran war shouldn’t overtake other risks
While the Bank of Canada’s governing council spent considerable time discussing the inflation risks posed by the war in Iran, officials agreed that they “should not lose sight” of other major economic headwinds when they held interest rates steady last month.
Coverage Details
Total News Sources13
Leaning Left4Leaning Right1Center4Last UpdatedBias Distribution45% Left, 44% Center
Bias Distribution
- 45% of the sources lean Left, 44% of the sources are Center
45% Left
L 45%
C 44%
11%
Factuality
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