Central banks hold rates steady, but future decisions remain uncertain.

Bank of Canada Governor Tiff Macklem has said that interest rates in Canada may have to remain restrictive for a longer period to ensure inflation declines to the central bank's 2% target. The bank has decided to hold its key rate at 4.50%, and while it is encouraged that inflation is dropping, the job of monetary policy is not done. Macklem said that the policy rate may need to remain restrictive for longer to return inflation to the 2% target.