Canadian inflation would have accelerated further in January were it not for Ottawa’s tax holiday, putting the Bank of Canada in an awkward position when it comes to its next interest rate decision ,

A need to fuel faster growth and shield the economy from U.S. trade-policy uncertainty led senior Bank of Canada officials to agree on a quarter-point rate cut last month, according to minutes summarizing central bank deliberations.

Bank of Canada officials acknowledged that the economic uncertainty created by a potential trade battle supported their decision to cut interest rates last month.

The Bank of Canada has appointed Michelle Alexopoulos to the central bank’s second outsider position, expanding its interest-rate setting council to seven.

Canada’s jobless rate has fallen for two consecutive months, as it dropped to 6.8 per cent in December from a recent peak of 6.9 per cent in November. Prior to that, the unemployment rate had been on a steady rise from a post-pandemic low of 4.6 per cent in July 2022.

Canada's annual inflation rate rose 1.9% in January, up from 1.8% in December as lower prices helped by a sales tax reprieve were partly offset by higher cost of gasoline and natural gas, data showed on Tuesday.

Economists are more confident the Bank of Canada might pause its interest rate cuts next month — tariffs notwithstanding — as Canada's annual inflation rate ticked back up in January.

Canada’s inflation rate climbed to 1.9 per cent in January, up from 1.8 per cent the month before, as Canadians faced increased energy costs to start the year, Statistics Canada said on Tuesday. Energy prices rose 5.

Canada's annual inflation rate edged up to 1.9% in January, as higher energy prices offset the effect of the GST/HST "holiday" on food and certain other items, Statistics Canada said on Tuesday. Analysts had expected annual inflation rate to rise to 1.