Bank of Canada warns of policy 'dilemma' as scheduled According to a report by Golden Finance, on June 10th, the Bank of Canada maintained its key interest rate unchanged today, but reiterated that US trade uncertainty and the Iran war may mean it needs to take measures such as interest rate cuts or consecutive rate hikes to stabilize inflation. This is its fifth consecutive time remaining inactive, in line with market expectations, as the country's economy remains weak and global oil shocks are pushing up inflation. The weakness of the economy and rising inflation pose challenges to monetary policy, "said Bank of Canada Governor MacLehose." Raising interest rates to curb inflation may further drag down the economy. Lowering interest rates to support growth increases the risk of sustained inflation. "However, MacLehose stated that given the continued high level of uncertainty, monetary policy needs to remain" flexible. He reiterated the statement in the April resolution that if the United States implements "significant new trade restrictions," it may need to lower policy rates to support economic growth. On the other hand, if the Middle East conflict persists and rising energy prices begin to trigger sustained widespread inflation, monetary policy will face more challenges - possibly requiring continuous increases in policy interest rates.