Bank of Canada Signals Possible Rate Hikes Amid Oil Price Concerns

The Bank of Canada kept its key policy rate at 2.25% on Wednesday, as expected by many analysts.

However, Governor Tiff Macklem warned that policymakers are prepared to raise borrowing costs multiple times if inflation remains too high.

Macklem cited higher oil prices caused by the Iran conflict as a major concern, saying it has increased the upside risks to the inflation outlook.

The bank's target inflation rate is 2%, and Canada's annual inflation rate is currently at 3%.