Analysis: The Bank of Canada maintains neutrality due to the inability to predict the prospects of a war with Iran.

Avery Shenfeld, Chief Economist of the Capital Markets Department of the Canadian Imperial Bank of Commerce, stated that the Bank of Canada tried to maintain neutrality in its interest rate policy statement, without giving any hints about the timing or direction of its next steps. Shenfeld said that the Bank of Canada would keep its policy interest rate unchanged at 2.25% and provided a balanced economic analysis. On one hand, the Bank of Canada indicated that growth risks are tilted to the downside, while on the other hand, it also emphasized the inflation risks posed by rising energy prices. Shenfeld added that the Bank of Canada stated that the impact of energy price shocks "will critically depend on their duration, which is currently impossible to know."