27 April 2026Markets & Economy
Fed, Bank of Canada hold rates as war clouds policy
Central banks paused after late-2025 easing cycles, with the Fed holding at 3.5-3.75 percent despite two FOMC members dissenting for cuts. The Bank of Canada kept rates at 2.25 percent, flagging 'bidirectional uncertainty' from energy volatility and US tariff threats. Markets had priced 96-97 percent odds of holds across Fed, BoC, and Bank of Japan decisions this week. The pause reflects elevated inflation risks from Middle East war driving energy prices higher, with Canadian CPI already ticking up to 2.4 percent in December from prior 2.2 percent readings.
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