The Bank of Canada is set to deliver its fifth interest rate decision of the year, with economists widely expecting the central bank to keep its policy rate at 2.25%.

Inflation has risen above three percent in recent months due to higher oil prices from the Iran war, which caused gasoline costs to skyrocket over spring.

Officials have emphasized their willingness to monitor inflation beyond initial price shocks but are prepared to act if inflation spreads beyond gas pumps.The bank will also release new forecasts detailing how the Iran conflict and other economic factors are influencing growth and inflation outlooks.Recent data suggests a modest economic rebound from a weak first quarter, with improved labor market indicators.This decision comes amid broader discussions about Canada's economic resilience and global market volatility.