Bank of Canada Maintains Rate, Warns of Inflation Risks Amid Trade Tensions

The Bank of Canada maintained its policy rate at 2.25% for the seventh consecutive meeting, but its tone was more hawkish than expected.

Governor Tiff Macklem emphasized that inflation remains too high and upside risks have increased due to higher energy prices and trade tensions with the US.

The Canadian economy's August labour market data will be released today at 2:30pm Central European Time, showing a consensus of an increase in 15,000 jobs. However, this figure is often unreliable, as seen in recent months where actual job numbers have been significantly higher or lower than expected.

Last month, Canada created nearly 75,000 new jobs, exceeding expectations and contributing to the overall recovery.