Bank of Canada Raises Policy Rate as Risks Shift Toward Energy Inflation
Capital Economics economist Bradley Saunders says the decision reflects a shift toward energy-driven inflation risks over trade-related downside risks. He says the bank pushed back against hawkish market expectations.
The Bank of Canada's decision to raise the policy rate shows the balance of risks has now tipped toward the threat of energy-driven inflation over downside risks from trade tensions, Capital Economics' Bradley Saunders says. Still, the economist says the central bank pushed back against hawkish mar…