The Bank of Canada held its benchmark interest rate steady on Wednesday but said it’s prepared to adjust monetary policy if needed amid a global oil price shock that risks reigniting inflation. 

As widely expected, the central bank’s governing council kept the policy rate at 2.25 per cent for the third consecutive time. 

The rate decision was made against the backdrop of a sharp rise in energy prices caused by the war between the United States, Israel and Iran, which has largely closed the Strait of Hormuz through which around a fifth of global oil supplies typically travel.