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      Bank of Canada Governing Council Discusses Inflation Risks Amid Global Uncertainty

      The Bank of Canada (BoC) has indicated that near-term inflation is likely to remain elevated, citing persistent high energy prices and ongoing conflicts in the Middle East as contributing factors. These developments have led to increased market expectations for inflation, prompting the Governing Council to assess the risks associated with inflation spreading to non-energy goods and services.

      During their recent deliberations, members of the Governing Council expressed concerns that the risks to their July forecasts have intensified. They noted that trade uncertainties are complicating growth prospects, adding to the challenges facing the Canadian economy. Despite these concerns, the BoC decided to hold interest rates steady in September, although market expectations suggest that more than 100 basis points of rate hikes could occur over the next year.

      © 2026 KLEA News. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

      Source: KLEA News

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