March 18: U.S. Federal Reserve, Bank of Canada keep key interest rates unchanged amid oil-driven inflation risks

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.

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