Bank of Canada holds interest rate steady as Iran energy shock drags on - BERITAJA

The Bank of Canada held its benchmark liking complaint unchanged astatine 2.25 per cent connected Wednesday arsenic the Iran warfare entered its 3rd month, starring to a continued fog of uncertainty complete the world economy.

This marks the 4th consecutive complaint clasp for the cardinal slope since it delivered a 0.25 per cent trim successful October 2025.

Iran has blockaded the Strait of Hormuz – the cardinal waterway that accounts for 20 per cent of world lipid proviso – successful consequence to U.S. and Israeli strikes connected its territory. The blockade, mixed pinch Tehran’s strikes connected power sites crossed the Persian Gulf, has led to a world substance and power crisis.

For Canadians, that has meant higher prices astatine the state pumps and costlier groceries arsenic Canada’s nutrient suppliers started adding fuel surcharges to nutrient deliveries.

Canada’s inflation complaint inched higher to 2.4 per cent successful March, compared pinch 1.8 per cent successful February, led mostly by substance costs amid the Iran warfare and the closure of the Strait of Hormuz.

Excluding gasoline, though, the gait of ostentation slowed to 2.2 per cent successful March, compared pinch 2.4 per cent successful February.

Food prices, however, soared successful March. The prices of nutrient purchased from stores roseate by 4.4 per cent successful March, compared pinch 4.1 per cent successful February.

Fresh vegetables saw the steepest increase, pinch prices for caller vegetables rising 7.8 per cent successful March. This was a important summation compared pinch February, which hardly saw immoderate summation successful the value of caller vegetables (0.5 per cent).