Bank of Japan Signals Potential Rate Hike as Inflation Risks Rise Amid Energy Shock 
Paraguay Holds Interest Rate at 5.5% as Inflation Remains Stable Amid Global Uncertainty 
Fed’s Goolsbee Warns Inflation Remains Elevated, Signals Caution on Rate Cuts 
US-China Trade Talks Begin in South Korea Ahead of Trump-Xi Beijing Summit 
South Korea Central Bank Signals Inflation Concerns as Oil Prices Surge 
Bank of Japan's Ueda Flags Low Real Interest Rates as Key Factor in Rate Hike Timing 
Gold Prices Steady Ahead of Trump-Xi Meeting as Inflation and Oil Concerns Persist 
Trump and Xi Temple of Heaven Visit Highlights Trade and Diplomacy Goals 
Bank of Canada held interest rate unchanged at 0.5 percent at its latest policy decision on Wednesday, but warned of persistent risks that suggest it will not hike anytime soon. In January, BoC governor Poloz had left the door open to a possible rate cut, citing the uncertainty surrounding the U.S. trade agenda and the lacklustre state of the Canadian economy.
But following the string of solid numbers, the bank acknowledged the improvements and raised growth expectations. It now forecasts real gross domestic product to expand at an annual rate of 2.6 percent this year, up from its January forecast of 2.1 percent.
The bank, however, also reiterated still-present downside risks highlighted by the U.S. uncertainty. Governor Stephen Poloz and Senior Deputy Governor Carolyn Wilkins in a second day of testimony after releasing the bank’s closely watched monetary policy report on Wednesday warned a Senate committee of the possible impact of changes to U.S. trade policy, saying it is the greatest risk to Canada’s economic outlook.
TD Bank senior economist Brian DePratto said it's a "little difficult to square" the bank's stronger projections, such as its bigger growth forecast, with the more downbeat tone of its accompanying statement.
