The Bank of Canada leaves rates unchanged, seeing as "appropriate" despite energy shock.
Bank of Canada April 2026
Andrew DiCapua
Share:
The global uncertainty that is pushing oil prices higher may be giving the federal fiscal outlook a boost, but it’s a different story for the Bank of Canada. Rising commodity prices are adding to inflationary pressures, and the Bank now expects headline inflation to remain above target this year. The reality is that global commodity prices are likely to stay elevated.
With inflation expectations climbing for both businesses and consumers, the Bank finds itself in a tricky spot. These higher costs pose risks and could show up across different components of inflation. That said, with the Canadian economy still facing headwinds, the risk of persistently high inflation remains relatively contained. For now, the path for interest rates looks largely sideways.
Other Blogs
Canada’s economy on pace to rebound in the first quarter
Use it while you can: The federal government spends its growth-driven fiscal windfall
A Solid Start, but Signs of Fatigue Emerging: Retail Sales February 2026
Inflation rises on energy shock, but underlying price pressures muted.
Sticky hiring, but wage growth at its highest since 2024: Labour Force Survey March 2025
Volatile Imports Drive Wider Deficit Despite Export Rebound: Merchandise Trade February 2026
January 2026 GDP: Canada’s economy kicks off 2026 on decent footing
Strong Start to the Year, but Underlying Momentum Remains Fragile: Retail Sales January 2026
