Bank of Canada Agreed Iran War Shouldn’t Overtake Other Risks

While the Bank of Canada’s governing council spent considerable time discussing the inflation risks posed by the war in Iran, officials agreed that they “should not lose sight” of other major economic headwinds when they held interest rates steady last month.

Higher oil prices caused by the conflict in the Middle East “clearly added a new layer of uncertainty” in Canada as gasoline prices spiked, the central bank said in a summary of deliberations of its March meeting.