BoC leaves rates on hold at 2.25%, as expected; removes language that current policy rate remains appropriate

Removes language that "Governing Council judges the current policy rate remains appropriate"
“Risks to growth look tilted to the downside.”
“Inflation risks have gone up due to higher energy prices.”
“We continue to expect the Canadian economy to grow modestly as it adjusts to US tariffs and trade policy uncertainty, but recent data suggest that near-term economic growth will be weaker than anticipated in January.”
“The labour market remains soft.”
Employment gains in the fourth quarter of 2025 were largely reversed in the first two months of 2026, and the unemployment rate rose to 6.7% in February.
“It’s too early to assess the impact of the conflict in the Middle East on growth in Canada.”
“The war in the Middle East has increased volatility in global energy prices and financial markets, and heightened the risks to the global economy.”
“The breadth and duration of the conflict, and hence its economic impacts, are highly uncertain.”
“Since the outbreak of the conflict in the Middle East, global oil and natural gas prices have risen sharply, and this will boost global inflation in the near-term.”
Transportation bottlenecks stemming from the effective closure of the Strait of Hormuz could impact the supply of other commodities, such as fertilizer.
“The sharp increase in global energy prices has led to increases in gasoline prices, and this will push up total inflation in the coming months.”
“We will continue to assess the impact of US tariffs and trade policy uncertainty, and how the Canadian economy is adjusting.”
“We are also monitoring the unfolding conflict in the Middle East closely and assessing its impact on growth and inflation.”
“As the outlook evolves, we stand ready to respond as needed.”