The Bank of Canada held its overnight rate at 2.25% on September 2, the seventh consecutive decision at that level since an October 29, 2025 cut, even as inflation has climbed since bottoming at 1.8% in February. The Bank has warned that tariffs and elevated oil prices tied to the Iran conflict could push inflation higher still, a shift that could force a hike rather than the cut markets had priced in earlier this year.
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