Bank of Canada holds key interest rate at 2.25%, predicts uncertainty with Middle East conflict

The Bank of Canada held its key interest rate at 2.25-percent yesterday but warned of a new level of uncertainty because of the war in the Middle East.

The Bank says higher oil and gas prices are likely to boost global inflation -- at least in the short term.

It also stressed in its decision that it's "too early" to know the impact of the conflict on Canadian economic growth.

(Written by: Loreena Dickson)