{"id":71307,"date":"2026-09-02T11:08:14","date_gmt":"2026-09-02T15:08:14","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/boc-holds-rates-amid-inflation-risks-u-s-refinery-inputs-hit-7-year-high\/71307\/"},"modified":"2026-09-02T11:08:14","modified_gmt":"2026-09-02T15:08:14","slug":"boc-holds-rates-amid-inflation-risks-u-s-refinery-inputs-hit-7-year-high","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/boc-holds-rates-amid-inflation-risks-u-s-refinery-inputs-hit-7-year-high\/71307\/","title":{"rendered":"BoC Holds Rates Amid Inflation Risks; U.S. Refinery Inputs Hit 7-Year High"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>Bank of Canada (BoC) maintained its policy interest rate at 2.25%<\/strong>, citing increased upside risks to inflation driven by the ongoing Middle East conflict and new trade tariffs.<\/li>\n<li><strong>U.S. refiner <a href=\"https:\/\/stockmarketwatch.com\/energy\/crude-oil\" data-internallinksmanager029f6b8e52c=\"12\" title=\"Crude oil\">crude oil<\/a> net input reached 17.4 million barrels per day<\/strong>, the highest level since August 2019, as domestic facilities operate at near-peak capacity to meet demand.<\/li>\n<li><strong>Governor Tiff Macklem warned of &quot;spillover&quot; risks<\/strong>, noting that while core inflation remains near 2%, persistent high oil prices and elevated refinery margins could drive broader price increases.<\/li>\n<li><strong>President Trump announced a $400 million &quot;gift to America,&quot;<\/strong> confirming that the Supreme Court cleared the way for the construction of a massive ballroom and military complex in D.C.<\/li>\n<li><strong>Ford Motor (<a href=\"\/stock\/F\">F<\/a>) faces shifting trade dynamics<\/strong> as it navigates new Canadian counter-tariffs and pursues multi-billion dollar NATO military contracts for its Ranger-based defense vehicles.<\/li>\n<\/ul>\n<h2>Bank of Canada Holds Rates as Geopolitical Risks Mount<\/h2>\n<p>The <strong>Bank of Canada<\/strong> elected to keep its benchmark interest rate steady at <strong>2.25%<\/strong> on Wednesday, marking a continued &quot;wait-and-see&quot; approach. Governor <strong>Tiff Macklem<\/strong> emphasized that while the Canadian economy showed a broadening recovery with <strong>3.3% GDP growth<\/strong> in the second quarter, the outlook is clouded by the &quot;fluid&quot; situation in the Middle East and a re-escalating trade dispute with the United States.<\/p>\n<p>Inflation currently sits at <strong>3.0%<\/strong>, primarily driven by volatile gasoline prices resulting from the conflict in Iran and the closure of the Strait of Hormuz. Macklem noted that inflation excluding gasoline remains more stable at <strong>2.2%<\/strong>, but cautioned that the longer global energy prices remain elevated, the greater the risk that these costs will seep into the prices of other goods and services.<\/p>\n<h2>U.S. Energy Sector Hits Multi-Year Production Milestone<\/h2>\n<p>According to the latest <strong>Energy Information Administration (EIA)<\/strong> report, U.S. refiners have ramped up activity to levels not seen in seven years. Net crude oil input climbed to <strong>17.4 million barrels per day<\/strong>, driven largely by Gulf Coast facilities processing crude at their fastest rate since 2018.<\/p>\n<p>This surge in refining activity comes as the U.S. Energy Secretary presses domestic firms to offset supply-side disruptions in the Middle East. Despite the high throughput, commercial crude inventories fell by <strong>4.45 million barrels<\/strong> this week, significantly exceeding analyst forecasts of a <strong>0.4 million barrel<\/strong> draw, which has provided additional support to crude oil prices.<\/p>\n<h2>Corporate and Political Developments<\/h2>\n<p>In Washington, <strong>President Donald Trump<\/strong> celebrated a legal victory on Truth Social after the Supreme Court allowed construction to proceed on a <strong>$400 million ballroom and military complex<\/strong>. Trump characterized the project as a &quot;gift&quot; to the nation, funded by private corporations and &quot;patriots,&quot; intended to serve as a high-security installation capable of withstanding missile and drone attacks.<\/p>\n<p>In the automotive sector, <strong>Ford Motor (<a href=\"\/stock\/F\">F<\/a>)<\/strong> is navigating a complex landscape of tariffs and new opportunities. While the company deals with the fallout of Canadian counter-tariffs, it is aggressively bidding for a <strong>NATO light mobility vehicle program<\/strong>. Ford (<a href=\"\/stock\/F\">F<\/a>) is partnering with <strong>General Dynamics (<a href=\"\/stock\/GD\">GD<\/a>)<\/strong> to pitch military-grade versions of its Ranger pickup, aiming to leverage its existing production scale in Europe to secure the multi-billion dollar contract.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways Bank of Canada (BoC) maintained its policy interest rate at 2.25%, citing increased upside risks to inflation driven 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