Content and data provided by various third parties and Fidelity - Terms of Use
Print.Print
Small font size A Larger text size A Largest text size A

Bank of Canada Dropping Earlier Guidance On Monetary Policy Of Particular Note To Nomura

BY MT Newswires | ECONOMIC | 09:29 AM EDT

09:29 AM EDT, 03/19/2026 (MT Newswires) -- The Bank of Canada as expected left its policy rate unchanged at 2.25% on Wednesday, while Governor Tiff Macklem struck a broadly balanced tone at his press conference in saying the current geopolitical backdrop gave Governing Council some time to assess the impact of the Middle East conflict, notes Nomura.

Nomura notes the BoC sounded more cautious on inflation, highlighting upside risks from higher energy prices and transportation disruptions linked to closure of the Strait of Hormuz, while also noting downside risks to growth from the conflict and tighter financial conditions. And on policy, the BoC said it would look through the near-term inflation impact, but would act if price pressures began to broaden or prove persistent.

Notably, Nomura says the BoC dropped earlier guidance that policy was appropriately positioned near the lower end of neutral to support growth while keeping inflation contained. Governor Macklem offered no directional guidance on the next move, citing elevated uncertainty, it adds.

MT Newswires does not provide investment advice. Unauthorized reproduction is strictly prohibited.

More Fixed Income News

All Fixed Income News

In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

© 1998 – 2014 FMR LLC.

All rights reserved.
fir_news_article