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Bank of Canada 'Dilemma' Solved as Oil Prices Fall Below Pre-Iran War Levels, Rosenberg Research Says

BY MT Newswires | ECONOMIC | 08:15 AM EDT

08:15 AM EDT, 06/25/2026 (MT Newswires) -- The Bank of Canada's June Summary of Deliberations highlighted a key policy trade-off "dilemma" between responding to rising inflation and supporting economic growth, which Rosenberg Research said has been resolved.

At the June 10 policy meeting, WTI oil was around US$90 per barrel, having already partially retraced the surge resulting from the Iran war, Rosenberg said in a note Thursday.

By the release of the BoC's summary on Wednesday, oil had fallen back to just above US$70 a barrel, reversing most of the spike and breaking below its 200-day moving average, effectively easing the central bank's policy trade-off between hiking and cutting rates, Rosenberg said.

Bank policymakers remain cautious about the labor market, noting continued volatility in employment, according to the summary. As a result, even a few strong jobs reports are unlikely to alter the central bank's focus on the broader trend of weak employment, according to Rosenberg.

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

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