The Bank of Canada left the target for its benchmark overnight rate steady at 2.25% in June 2026, in line with expectations. The central is continuing to look through the war’s near-term impact on headline inflation, but noted that it will not let higher energy prices become persistent inflation and stands ready to respond as needed. Policymakers also noted that economic activity in Canada has been weak and uncertainty about US trade policy persists while the conflict in the Middle East is ongoing and oil prices remain elevated.