BOJ Rate Hike Expectations Grow as Board Member Signals Hawkish Stance 
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Bank of Korea Signals Potential Interest Rate Hikes as Inflation Remains Elevated 
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Bank of England Set to Hold Interest Rates as Inflation Risks and Iran War Impact Loom 
Fed’s Goolsbee Warns Inflation Remains Elevated, Signals Caution on Rate Cuts 
DOJ Ends Probe Into Fed Chair Jerome Powell, Boosting Kevin Warsh Confirmation Prospects 
The Bank of Canada (BoC) cut its benchmark interest rate to 2.25% on Wednesday, a move that was generally expected by markets. The central bank's most recent policy statement, the first since January, provided a clearer picture of how US trade moves are affecting Canada's economy and inflation outlook.
The Bank of Canada now forecasts 1.2% GDP growth in 2025, 1.1% in 2026, and 1.6% in 2027, indicating a gradual but consistent recovery. Inflation is predicted to hover near the 2% target for the projection period, albeit underlying price pressures remain slightly excessive at roughly 2.5%.
Policymakers highlighted that the current rate level is suitable for stabilizing inflation while cushioning the economy during a period of structural restructuring. However, the Governing Council reaffirmed that it stands ready to change policy if inflation or economic trends depart from expected levels.
