BoC Holds Rates at 2.25%, Labels Oil Inflation Temporary

The Bank of Canada kept its policy rate at 2.25% on April 29, treating headline CPI at 2.4% in March—and projected 3% in April—as a passing oil shock, with core inflation just above 2% set to normalize soon. GDP forecasts held steady at 1.2% for 2026, 1.6% for 2027, and 1.7% for 2028, amid 6.5-7% unemployment. This matched April 28 previews of no change due to soft data, weak jobs, and US-Iran risks, with markets eyeing Q4 2026 hikes. The neutral-to-mixed tone signals limited CAD tightening, eyeing USDCAD swings.