Bank of Canada Split on Economic Rebound Sustainability

The Bank of Canada's July interest rate decision left its benchmark overnight rate unchanged at 2.25%, but governors were split on the sustainability of the economic rebound, minutes from the meeting showed.

Governing Council members agreed they needed to monitor data closely for signs that growth was broadening as predicted. Disappointing growth could be caused by several factors, including the failure of businesses to adapt to US tariffs and a stalled housing market in Toronto and Vancouver.

The bank will look through the direct effects of higher oil prices, which may cause inflationary effects to broaden. However, there is limited evidence that these effects are spilling over to other goods and services.