News Analysis
OTTAWA—As widely expected, the Bank of Canada enacted its pause of interest rate hikes on March 8, but what may be the most compelling reason for the BoC to start raising rates again was not mentioned in its statement.  
Economists and investors have long said that there are limits on how much monetary policy can diverge between Canada and the United States given how interconnected their economies are.
Canada’s central bank held its overnight rate target at 4.5 percent, saying that “global economic developments have evolved broadly in line with the outlook in the January Monetary Policy Report (MPR).”…