Bank of Canada Governor Tiff Macklem said policymakers don’t want to be late to hike interest rates should inflationary pressures prove to be stubborn.

The Bank of Canada’s governing council warned that it may need to hike interest rates, saying the longer gasoline prices remain elevated, the more likely that would pass through to other goods and services.

Prime Minister Mark Carney is expanding the scope of a major investment tax write-off, adding oil and gas pipelines, oil production equipment, mining property and more to the list of assets eligible for immediate expensing in Canada.

Canada will prioritize requests for income tax clarity related to investments of at least C$1 billion ($720 million), a move meant to help international firms seeking to deploy capital in the nation.

The Bank of Canada held interest rates steady for a seventh consecutive meeting, but emphasized that an escalation of the trade war with the US and the Iran conflict are fueling new inflation concerns.

Finance Minister Francois-Philippe Champagne said positive investor sentiment is helping keep Canada’s borrowing costs in check despite a global bond rout, arguing the country’s finances are strong enough to handle the volatility.

The Bank of Canada is likely to hold borrowing costs steady, as an escalation in the trade war with the US threatens the economic recovery while adding to inflation risks.

Canada’s top economists told the country’s finance minister that the damage from the spiraling trade war with the US should be manageable, potentially bolstering Prime Minister Mark Carney’s case for walking away from the talks.

Canada’s current account surplus came in at more than twice economists’ expectations as crude oil and bitumen exports jumped to a record, giving the country a trade cushion ahead of an intensifying tariff dispute with the US.

Canadians wanted their prime minister to stand tough and not sign a bad trade deal with the US. But the collapse of talks, and the escalation of the tariff war, will come at a price.

Canadian retail sales are set to fall for the first time this year, but strong second quarter purchases point to a rebound in consumption.

Canadian Prime Minister Mark Carney is on the brink of a trade pact with the US. His next challenge will be convincing his country that swallowing some tariffs is worth the greater economic certainty that a deal would bring.

Canadian companies facing 50% tariffs on exports to the US remained in limbo as President Donald Trump delayed a deadline to finalize a deal until Friday — prolonging uncertainty weighing on Canada’s economy.

The Bank of Canada’s governing council agreed the economy was “adjusting” to shocks, though some questioned whether the recovery was sustainable and others raised concerns about rising inflation expectations.

Canadians are shaking off months of economic pessimism as worries about weak growth and higher energy prices fade.

Canadian retail sales are set to rise in June after months of gasoline-driven gains, while the data point to consumers broadening their purchases beyond fuel.

President Donald Trump’s latest trade threat against Canada carries a stark reminder for businesses weighing expansion in the northern nation — tariff-free access to the US is far from guaranteed.

The Bank of Canada held interest rates steady for a sixth consecutive meeting as policymakers see the economy rebounding and oil price-driven inflation fading.

The Bank of Canada won’t provide its interest rate decision on an embargoed basis to media outlets on Wednesday because of a planned protest in support of striking security guards.

Employment in Canada rose 18,200 in June and the unemployment rate fell to 6.5% as the country’s labor market shows some signs of tightening.