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18 Mar 2026, 16:02

Bitcoin (BTC) Drops Below $75,000 as Hot US Inflation Data Sparks Fed Rate Hike Fears

US PPI inflation just surged 0.7%, shattering expectations and sending Bitcoin below the $74,000 support as Fed rate hike fears return to the menu.

18 Mar 2026, 15:50

WTI Oil Prices Surge as Middle East Conflict Intensifies, While Iraq-Turkey Deal Offers Critical Supply Relief

BitcoinWorld WTI Oil Prices Surge as Middle East Conflict Intensifies, While Iraq-Turkey Deal Offers Critical Supply Relief Global oil markets witnessed significant volatility this week as WTI crude oil prices climbed steadily amid ongoing Middle East hostilities, while simultaneously, a crucial pipeline agreement between Iraq and Turkey helped mitigate immediate supply concerns. The dual forces of geopolitical tension and diplomatic resolution created a complex trading environment that analysts continue to monitor closely for long-term implications on energy security and economic stability worldwide. WTI Oil Prices React to Persistent Middle East Conflict West Texas Intermediate crude futures experienced notable upward pressure throughout recent trading sessions. Consequently, prices approached key resistance levels not seen in several months. The primary driver remains the protracted military engagement across multiple Middle Eastern theaters. Specifically, continued hostilities have raised persistent concerns about potential supply disruptions from major producing nations. Market analysts point to several critical factors influencing current price movements: Transportation security risks affecting key shipping lanes Production facility vulnerabilities in conflict-adjacent regions Insurance premium increases for cargoes moving through high-risk zones Strategic reserve drawdowns by consuming nations as precautionary measures Furthermore, the conflict’s duration has amplified market sensitivity to any news regarding regional stability. Traders now react swiftly to developments that might affect production or export capabilities from major Middle Eastern suppliers. This heightened sensitivity contributes to increased daily price volatility across global crude benchmarks. Iraq-Turkey Pipeline Agreement Eases Immediate Supply Fears Simultaneously, energy markets received positive news regarding crude transportation infrastructure. Iraq and Turkey recently finalized terms for resuming operations along their critical pipeline corridor. This agreement provides essential export capacity for Iraqi crude to reach Mediterranean markets. Additionally, it offers alternative routing options that bypass more volatile transit regions. The pipeline’s operational status directly affects global supply calculations. Specifically, it enables approximately 450,000 barrels per day of additional crude to reach international markets. This volume represents a meaningful percentage of global daily trade flows. Moreover, the agreement includes enhanced security protocols and revised revenue-sharing terms satisfactory to both nations. Key Pipeline Agreement Terms Component Details Daily Capacity 450,000 barrels Route Length Approximately 1,000 kilometers Primary Term 5 years with extension options Security Provisions Joint monitoring and protection forces Revenue Mechanism Revised transit fee structure Energy security experts emphasize this development’s importance. The pipeline provides crucial diversification for Iraqi exports while offering European refiners additional supply options. Consequently, it reduces dependence on more volatile maritime routes through the Strait of Hormuz. Market Analysts Weigh Conflicting Signals Financial institutions and commodity research firms have published extensive analysis of current market conditions. Goldman Sachs commodities research head, Samantha Chen, noted the unusual coexistence of bullish and bearish factors. “We observe classic push-pull dynamics,” Chen explained. “Geopolitical risk premiums elevate prices while tangible supply increases exert downward pressure.” Similarly, the International Energy Agency’s latest monthly report highlighted this balancing act. The agency revised its 2025 demand growth projection upward by 200,000 barrels daily. However, it also noted sufficient spare production capacity among OPEC+ members to cover potential disruptions. This capacity estimate provides markets with psychological comfort during turbulent periods. Historical Context and Price Trajectory Analysis Current price movements occur within a broader historical framework. WTI crude has traded within a $15 range for most of the current quarter. This relative stability contrasts sharply with previous conflict-driven spikes. Market memory of 2022’s price surge following Russia’s Ukraine invasion remains fresh. Consequently, traders exhibit caution regarding potential escalation scenarios. Technical analysis reveals several important price levels. The $85 per barrel mark represents significant psychological resistance. Meanwhile, the 200-day moving average provides dynamic support near $78. Breakouts in either direction could signal sustained trend development. Options market data shows increased hedging activity at both higher and lower strike prices. Several fundamental factors support the current trading range: Strategic petroleum reserves at multi-year lows in consuming nations Global inventory levels below five-year averages Refinery maintenance schedules affecting immediate demand Economic growth projections influencing future consumption estimates Regional Production and Export Dynamics Middle Eastern producers continue adjusting output in response to market conditions. Saudi Arabia maintains its voluntary production cuts of one million barrels daily. Meanwhile, the United Arab Emirates utilizes its expanded production capacity to capture market share. These divergent strategies reflect differing economic priorities among OPEC members. Iraq’s production profile merits particular attention. The nation remains OPEC’s second-largest producer despite internal challenges. Recent infrastructure investments have enhanced export capabilities through multiple channels. The Turkey pipeline agreement represents the latest improvement to this export network. Additionally, southern export terminals continue operating at near-capacity levels. Regional shipping patterns show adaptation to security concerns. More vessels now utilize enhanced tracking and security protocols. Insurance providers have developed specialized coverage for high-risk transit zones. These adaptations enable continued crude movement despite elevated threat levels. Global Economic Implications and Inflation Concerns Sustained higher oil prices inevitably affect broader economic conditions. Central banks monitor energy costs closely due to their direct impact on inflation metrics. The European Central Bank recently noted energy’s “disproportionate influence” on consumer price indices. Similarly, the Federal Reserve considers fuel costs when evaluating monetary policy trajectories. Transportation sectors face immediate cost pressures. Airlines have begun implementing fuel surcharges on certain routes. Shipping companies similarly adjust freight rates to reflect higher bunker fuel expenses. These increases eventually filter through to consumer goods pricing across multiple categories. Developing economies experience particularly acute effects. Many lack strategic reserves or hedging mechanisms available to wealthier nations. Consequently, they face difficult trade-offs between fuel subsidies and fiscal stability. The International Monetary Fund has warned about potential debt sustainability issues in vulnerable economies. Future Outlook and Monitoring Points Market participants will monitor several key developments in coming weeks. Diplomatic efforts toward regional ceasefire agreements could reduce risk premiums substantially. Conversely, conflict expansion would likely trigger additional price increases. The delicate balance between these possibilities creates ongoing uncertainty. Technical factors also warrant attention. The Northern Hemisphere’s driving season approaches, typically increasing gasoline demand. Refinery utilization rates will indicate processing demand for crude feedstocks. Inventory data releases will provide crucial signals about supply-demand balance. Finally, financial market positioning offers insight into trader expectations. Commitment of Traders reports show hedge fund activity in crude futures. Large speculative positions can amplify price movements in either direction. Regulatory authorities monitor these positions for potential market stability concerns. Conclusion WTI oil prices continue reflecting the complex interplay between Middle East geopolitical risks and tangible supply developments. The Iraq-Turkey pipeline agreement provides meaningful market stabilization despite ongoing regional conflict. Market participants must balance immediate supply assurances against longer-term security concerns. Consequently, price volatility may persist until clearer resolution pathways emerge for underlying geopolitical tensions. The global economy’s sensitivity to energy costs ensures continued close monitoring of these developments by policymakers, corporations, and consumers alike. FAQs Q1: What are WTI oil prices currently reacting to most strongly? The market shows strongest reaction to Middle East conflict developments affecting supply security, while also responding to tangible infrastructure developments like the Iraq-Turkey pipeline agreement that increase physical supply availability. Q2: How does the Iraq-Turkey pipeline agreement affect global oil markets? The agreement enables approximately 450,000 barrels per day of additional Iraqi crude to reach international markets via a secure land route, reducing dependence on volatile maritime passages and providing supply diversification. Q3: What price levels are traders watching for WTI crude? Key technical levels include psychological resistance at $85 per barrel and support from the 200-day moving average near $78, with breaks beyond these levels potentially indicating sustained trend development. Q4: How might sustained higher oil prices affect inflation and central bank policies? Elevated energy costs directly increase consumer price indices, potentially complicating central bank efforts to control inflation and possibly delaying interest rate reductions in major economies. Q5: What should market observers monitor in coming weeks? Critical factors include diplomatic efforts toward regional ceasefire, inventory data releases, refinery utilization rates approaching driving season, and speculative positioning in futures markets. This post WTI Oil Prices Surge as Middle East Conflict Intensifies, While Iraq-Turkey Deal Offers Critical Supply Relief first appeared on BitcoinWorld .

18 Mar 2026, 15:45

USD/CAD Analysis: Currency Pair Slides Toward 1.3700 as BoC Holds Firm, Critical Fed Decision Looms

BitcoinWorld USD/CAD Analysis: Currency Pair Slides Toward 1.3700 as BoC Holds Firm, Critical Fed Decision Looms The USD/CAD currency pair retreated toward the critical 1.3700 support level on Wednesday, March 12, 2025, following the Bank of Canada’s anticipated decision to maintain its benchmark interest rate at 4.50%. Meanwhile, financial markets globally shifted their focus toward the impending Federal Reserve policy announcement scheduled for later today. This currency movement reflects complex interplay between two major central banks with divergent policy trajectories influencing North American financial flows. Bank of Canada Maintains Steady Policy Stance The Bank of Canada’s Governing Council announced its decision to keep the overnight rate target at 4.50% during its March policy meeting. Consequently, this marks the fifth consecutive meeting where officials have maintained current monetary settings. The central bank’s accompanying statement acknowledged moderating inflation pressures but emphasized persistent concerns about underlying price stability. Furthermore, policymakers highlighted ongoing monitoring of economic indicators before considering any potential policy adjustments. Governor Tiff Macklem’s institution faces a delicate balancing act between cooling inflation and supporting economic growth. Recent data shows Canada’s annual inflation rate declined to 2.8% in February from 3.1% in January. However, core inflation measures remain elevated above the bank’s 2% target. The Canadian economy expanded by 0.2% in the fourth quarter of 2024, avoiding technical recession but demonstrating clear slowing momentum. Economic Context Behind the BoC Decision Several key factors influenced the Bank of Canada’s decision to maintain current interest rates. First, housing market activity shows signs of stabilization following previous declines. Second, consumer spending demonstrates resilience despite higher borrowing costs. Third, labor market conditions remain relatively tight with unemployment at 5.7%. Fourth, global economic uncertainty persists regarding trade patterns and commodity demand. Fifth, the Canadian dollar’s recent appreciation provides some imported disinflationary pressure. Key economic indicators monitored by the Bank of Canada: Core inflation measures (CPI-trim and CPI-median) Wage growth and labor market dynamics Housing market activity and price trends Business investment and capacity utilization Global commodity price movements, especially oil Federal Reserve Policy Decision Takes Center Stage While the Bank of Canada maintained its steady course, attention immediately pivoted toward the Federal Reserve’s upcoming policy announcement. Market participants widely expect the U.S. central bank to maintain its federal funds rate within the current 5.25%-5.50% range. However, the critical focus remains on the Fed’s updated economic projections and Chair Jerome Powell’s subsequent press conference commentary. The Federal Reserve faces its own complex economic landscape. Recent U.S. inflation data showed consumer prices rose 3.1% year-over-year in February, slightly above expectations. Meanwhile, the labor market continues demonstrating remarkable strength with unemployment remaining below 4%. These conditions create challenges for policymakers seeking to normalize monetary policy without triggering economic contraction. Comparative Central Bank Policy Stances (March 2025) Indicator Bank of Canada Federal Reserve Policy Rate 4.50% 5.25%-5.50% Last Change January 2024 (+25bps) July 2024 (+25bps) Inflation Target 2.0% 2.0% Current Inflation 2.8% 3.1% Next Meeting April 16, 2025 May 7, 2025 USD/CAD Technical Analysis and Market Dynamics The USD/CAD pair’s movement toward 1.3700 represents a significant technical development. This level previously served as both support and resistance throughout early 2025. Market analysts note several key technical factors influencing current price action. First, the 50-day moving average currently sits at 1.3750, providing dynamic resistance. Second, the Relative Strength Index (RSI) approaches neutral territory near 45. Third, trading volume shows moderate increase during the European and North American sessions. Fundamental drivers extend beyond central bank policies alone. Canada’s economy maintains substantial exposure to commodity markets, particularly crude oil. West Texas Intermediate (WTI) crude oil prices recently traded near $78 per barrel, providing some support for the commodity-linked Canadian dollar. Additionally, trade dynamics between the United States and Canada continue evolving under the USMCA framework with bilateral goods trade exceeding $760 billion annually. Expert Perspectives on Currency Outlook Financial institutions and currency strategists offer varied perspectives on the USD/CAD outlook following these developments. CIBC Capital Markets analysts suggest the pair may test support near 1.3650 if the Federal Reserve signals dovish policy adjustments. Conversely, TD Securities researchers highlight potential resistance around 1.3800 should U.S. economic data surprise positively. Meanwhile, Scotiabank’s technical analysis identifies 1.3700 as a pivotal level that could determine near-term direction. Historical context provides additional insight into current market conditions. The USD/CAD pair has traded within a relatively narrow 1.3500-1.3900 range throughout most of 2024 and early 2025. This represents reduced volatility compared to the 1.3200-1.4200 range observed during 2023. The narrowing trading band reflects moderating inflation differentials and reduced policy divergence expectations between the two central banks. Broader Market Implications and Risk Considerations Currency movements between the U.S. dollar and Canadian dollar carry significant implications for multiple economic sectors. Export-oriented Canadian businesses benefit from a weaker loonie when selling to United States markets. Meanwhile, Canadian consumers face higher costs for imported goods when the domestic currency depreciates. Additionally, cross-border investment flows frequently respond to interest rate differentials between the two nations. Several risk factors could alter the current USD/CAD trajectory in coming weeks. First, unexpected changes in crude oil prices would directly impact Canada’s terms of trade. Second, geopolitical developments affecting global risk sentiment might trigger safe-haven flows into the U.S. dollar. Third, domestic political developments in either country could influence investor confidence. Fourth, technical breakouts beyond established trading ranges often accelerate momentum moves. Primary factors influencing USD/CAD direction: Central bank policy divergence between Fed and BoC Crude oil price movements and energy market dynamics Relative economic performance and growth differentials Risk sentiment in global financial markets Technical levels and trading pattern developments Conclusion The USD/CAD currency pair’s movement toward 1.3700 reflects immediate market reaction to the Bank of Canada’s steady policy decision. However, the Federal Reserve’s impending announcement represents the next critical catalyst for this important North American currency cross. Traders and investors must monitor both technical levels and fundamental developments as these two major central banks navigate complex economic landscapes. The interplay between monetary policy, commodity prices, and economic growth will continue determining the USD/CAD trajectory throughout 2025. FAQs Q1: Why did the USD/CAD pair move lower after the Bank of Canada decision? The Canadian dollar strengthened modestly because the Bank of Canada maintained a relatively hawkish tone despite holding rates steady, suggesting less urgency for near-term rate cuts compared to some market expectations. Q2: What is the significance of the 1.3700 level for USD/CAD? The 1.3700 level represents a key technical and psychological support/resistance zone that has contained price action multiple times in recent months, making it important for determining near-term direction. Q3: How does oil price affect the Canadian dollar? Canada is a major oil exporter, so higher crude prices typically strengthen the Canadian dollar (lower USD/CAD) by improving the country’s trade balance and economic outlook. Q4: What should traders watch in the Federal Reserve announcement? Beyond the rate decision itself, markets will focus on updated economic projections (the dot plot), any changes to quantitative tightening policy, and Chair Powell’s comments about inflation and future rate path. Q5: What are the main differences between BoC and Fed policy approaches? The Bank of Canada began its tightening cycle earlier and has shown slightly more concern about household debt, while the Federal Reserve maintains a higher policy rate and faces different inflation drivers in a larger, more services-oriented economy. This post USD/CAD Analysis: Currency Pair Slides Toward 1.3700 as BoC Holds Firm, Critical Fed Decision Looms first appeared on BitcoinWorld .

18 Mar 2026, 15:08

Bitcoin risks drop below $70K as hot PPI sparks market selloff

After rallying to weekly highs above $75,000, Bitcoin’s price traded sideways throughout the Asian trading hours on Wednesday. The market held its breath ahead of the FOMC meeting and Fed Chair Jerome Powell’s subsequent press conference. However, the release of a hotter-than-expected Producer Price Index (PPI), which surged 0.7% month-over-month, injected immediate volatility across the crypto markets. The total crypto market cap reacted instantaneously to the inflationary data, dropping from intraday highs of over $2.6 trillion toward the $2.45 trillion mark. This sharp correction wiped out much of the week's early optimism as traders recalibrated for a potentially more hawkish Federal Reserve. Top altcoins, which had shown modest gains or remained range-bound throughout the day, began falling in tandem with the broader market. Why is Bitcoin price going down? Bitcoin price began falling as markets reacted to the sobering PPI data. US PPI inflation rose well above expectations in February, signalling persistent inflationary pressures in the US economy that the Fed has struggled to quell. The Core PPI inflation came in even hotter, rising to 3.9% YoY (above estimates of 3.7%) and 0.5% MoM (above expectations of 0.3%). This inflation data comes just ahead of the Fed rate decision today, where the Fed is likely to maintain current rates. With this surprise jump in wholesale prices, the odds of a rate cut in the short term have diminished once again. On Polymarket, the odds of "zero rate cuts" for the upcoming window jumped to 25% as hawkish sentiment took hold. Meanwhile, the ongoing conflict between the US and Iran is adding more geopolitical risk to the mix. Markets were already falling in response to reports of an attack on Iran’s South Pars gas field, and now the escalating situation could further pressure prices if key support levels fail to hold. Sentiment has soured over the past 24 hours as the Crypto Fear and Greed Index fell 6 points to 43, officially crossing over into 'Fear’ after spending just a few days within neutral levels. A wave of long liquidations is now adding to the downward pressure. As Bitcoin’s price began falling, over-leveraged long positions started to hit their stop-loss levels, triggering an automated sell-off that accelerated the slide. Over $165 million worth of positions had been liquidated from the crypto markets in the just the past 4 hours at the time of writing. https://twitter.com/TedPillows/status/2034271203741811166?s=20 The vast majority of this carnage was driven by long-side wipes, with over $61 million in liquidations coming from Bitcoin alone as it struggled to maintain its footing above key support levels. Will Bitcoin price crash? Based on current price action, there’s a chance that Bitcoin price may extend its decline and fall to multi-month lows around $65,000 if the key psychological support at $70,000 fails to hold. A break below $70,000 could open the door for a sharper downside move, as it may trigger another wave of liquidations and force leveraged positions to unwind further. At the same time, the broader market environment remains fragile, with sentiment closely tied to whether buyers step in to defend current levels or allow the trend to slip further. Over the past few days, spot Bitcoin ETFs in the US have reversed course and recorded back-to-back inflows after a period of outflows, indicating a return of institutional demand. Meanwhile, significant regulatory developments have also provided some clarity, with the US SEC stating that many crypto assets may not qualify as securities under current interpretations. Such positive catalysts, alongside steady buying pressure from large investors and ETF inflows, could help mitigate downside risk and reduce the likelihood of a deeper correction if support levels continue to hold. According to Bitcon’s 24-hour liquidation heatmap, there’s significant concentration of liquidity remaining just below the current price action, specifically near the $71,800 mark. Bitcoin 24-hour liquidation heatmap. Source: Coinglass. These areas tend to act as price magnets, and as such, Bitcoin could continue to drift lower. At presstime, Bitcoin price was trading at $71,783, down over 3% in the past 24 hours. The post Bitcoin risks drop below $70K as hot PPI sparks market selloff appeared first on Invezz

18 Mar 2026, 15:05

Bitcoin, Ethereum Slip on Inflation Surprise as Oil Prices Jump

Bitcoin fell alongside U.S. stocks after the world's largest gas field came under attack amid hotter-than-expected inflation data.

18 Mar 2026, 14:55

Bank of Canada Governor Macklem Reveals Critical Outlook After Holding Rates Steady

BitcoinWorld Bank of Canada Governor Macklem Reveals Critical Outlook After Holding Rates Steady Bank of Canada Governor Tiff Macklem delivered a pivotal speech in Ottawa on Wednesday, outlining the central bank’s economic outlook following its decision to hold its key policy interest rate steady at 5.0%. This crucial announcement maintains the benchmark rate at its highest level in over two decades, signaling a continued focus on taming persistent inflationary pressures while navigating a fragile economic landscape. Bank of Canada Holds Firm on Interest Rates Governor Macklem confirmed the Governing Council’s unanimous decision to maintain the target for the overnight rate at five percent. Consequently, the Bank Rate remains at 5.25% and the deposit rate at 5.0%. This marks the sixth consecutive meeting where officials have held the policy rate unchanged, following a rapid hiking cycle that began in March 2022. The central bank continues its policy of quantitative tightening. Recent economic data provided the rationale for this pause. For instance, the Consumer Price Index (CPI) inflation eased to 2.7% in April, moving closer to the Bank’s 2% target. However, Governor Macklem emphasized that underlying price pressures remain. Core inflation measures, which strip out volatile components, are still hovering around 3%. Shelter cost inflation also remains exceptionally high. Macklem’s Detailed Economic Assessment In his remarks, Governor Macklem presented a balanced yet cautious assessment of the Canadian economy. Global economic growth strengthened in the first quarter of 2025, notably in the United States. However, he noted that growth in Canada has been more subdued. Real GDP growth stalled in late 2024 and early 2025, with demand outpacing supply. The labor market, a key indicator, has continued to gradually ease. Job creation has slowed and the unemployment rate has risen modestly. Wage growth, while still elevated at around 5%, is showing early signs of moderating. Overall, the Governor stated that the current data suggests the economy is operating in modest excess supply, a necessary condition for returning inflation sustainably to target. Inflation Outlook and Future Risks Governor Macklem spent significant time detailing the inflation forecast. The Bank’s latest Monetary Policy Report projects CPI inflation to remain near 3% through the middle of 2025 before gradually declining to the 2% target in the second half of 2026. This timeline is slightly extended from previous forecasts, reflecting stubborn core inflation. He outlined several key risks to this outlook: Global geopolitical tensions: Potential disruptions to commodity prices and supply chains. Housing market dynamics: Persistent strength in shelter costs driven by high mortgage interest costs and rising rents. Wage-price spiral: The risk that high wage growth could embed inflation expectations. Weaker global demand: A sharper-than-expected slowdown, particularly in the U.S., could impact Canadian exports. The Path Forward for Monetary Policy Governor Macklem was clear that the Governing Council is debating how long to maintain the current restrictive stance. The Bank’s future decisions will be data-dependent, with a focus on the balance between demand and supply, inflation expectations, wage growth, and corporate pricing behavior. He reiterated that the Bank remains resolute in its commitment to restoring price stability for Canadians. Financial markets closely parsed his language for hints on the timing of potential rate cuts. While he did not provide a specific calendar, his tone suggested the Governing Council needs to see further and sustained progress on core inflation before considering easing policy. The Bank’s next scheduled interest rate announcement is set for September 5, 2025, accompanied by a full update to the Monetary Policy Report. Comparative Central Bank Policy The Bank of Canada’s stance aligns cautiously with other major central banks. The U.S. Federal Reserve has also held rates steady, while the European Central Bank recently began a gradual easing cycle. The table below summarizes the current policy rate positions as of July 2025: Central Bank Policy Rate Recent Action Bank of Canada 5.00% Held Steady U.S. Federal Reserve 5.25-5.50% Held Steady European Central Bank 3.75% 25 bps Cut in June Bank of England 5.25% Held Steady This divergence reflects differing economic conditions, particularly the relative strength of the U.S. economy versus more subdued growth in Canada and Europe. Implications for Canadians and Businesses The decision to hold rates has immediate consequences. Variable-rate mortgage holders and those with lines of credit will see no change in their borrowing costs for now. However, the extended period of high rates continues to strain household budgets, particularly for those renewing fixed-rate mortgages at significantly higher rates than their previous terms. For businesses, the high cost of capital persists, potentially dampening investment and expansion plans. Governor Macklem acknowledged these pressures but stressed that restoring low and stable inflation is the foundation for long-term economic prosperity. He expressed confidence that inflation will continue to decline gradually, allowing for a eventual normalization of interest rates. Conclusion Bank of Canada Governor Tiff Macklem’s speech provided a sober and detailed rationale for maintaining the policy interest rate at 5.0%. The central bank’s outlook hinges on a gradual decline in inflation toward its 2% target by late 2026, contingent on continued economic softening and easing labor market conditions. While the hold decision offers short-term stability, the path forward remains data-dependent, with the Bank of Canada prepared to maintain its restrictive stance as long as necessary to ensure price stability for all Canadians. FAQs Q1: Why did the Bank of Canada decide to keep interest rates unchanged? The Bank of Canada held rates steady because while headline inflation has eased, core inflation measures remain sticky around 3%. The Governing Council needs to see further and sustained progress toward the 2% target before considering rate cuts, ensuring inflation does not become entrenched. Q2: What is the Bank of Canada’s current inflation forecast? According to Governor Macklem, CPI inflation is projected to hover near 3% through mid-2025 before gradually declining to the 2% target in the second half of 2026. This timeline reflects persistent pressures in shelter costs and core services. Q3: When might the Bank of Canada start cutting interest rates? Governor Macklem did not provide a specific timeline. Future decisions will be data-dependent. Most analysts expect the first rate cut could occur in late 2025 or early 2026, provided there is clear evidence of cooling core inflation and a softer labor market. Q4: How does the Bank of Canada’s decision compare to the U.S. Federal Reserve? Both central banks are currently holding rates steady at restrictive levels. The BoC’s key rate is 5.0%, while the Fed’s target range is 5.25-5.50%. The Fed is also awaiting more confidence that inflation is moving sustainably toward 2% before easing policy. Q5: What does this mean for my mortgage or loans? If you have a variable-rate mortgage or a line of credit tied to the prime rate, your payments will remain unchanged for now. If you are renewing a fixed-rate mortgage, you will still face significantly higher rates than during the low-rate period. The extended hold suggests relief from high borrowing costs may still be several months away. This post Bank of Canada Governor Macklem Reveals Critical Outlook After Holding Rates Steady first appeared on BitcoinWorld .