11:53 AM EDT, 06/10/2026 (MT Newswires) -- The Bank of Canada held interest rates steady again on Wednesday, as policymakers wait to see how the dueling risks to growth and inflation from elevated oil prices on the one hand, and trade uncertainty on the other, play out, said CIBC.

In keeping its overnight rate steady at 2.25%, the BoC continues to state that it would "look through" the near term spike in inflation driven by global oil prices, but also that it would guard against that turning into "persistent inflation," noted the bank.

While the tone from the BoC on Wednesday was very neutral and little changed relative to the April decision, financial markets appear to have been expecting a more hawkish tone and as a result bond yields moved lower as expectations for rate hikes this year were slightly reduced, stated CIBC.