The U.S. Federal Reserve left short-term interest rates unchanged for the second straight meeting. In a statement, the central bank said that the “implications of developments in the Middle East for the U.S. economy are uncertain.”
The Bank of Canada held its benchmark interest rate at 2.25 per cent for the third consecutive time. However, Governor Tiff Macklem said the central bank is “ready to respond” if needed amid a global oil price shock caused by the war in the Middle East that risks reigniting inflation.
Key moments:
- Bank of Canada leaves interest rate unchanged; U.S. Federal Reserve holds rates steady
- Rate hold might calm the housing market, but war could keep buyers on the sidelines
- Central banks around the world expected to deliver a batch of hawkish holds
- Middle East war driving up energy prices, with little relief in sight
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