The Globe and Mail reports in its Thursday, July 16, edition that the Bank of Canada kept its benchmark interest rate steady on Wednesday, expressing cautious optimism about the economy gaining momentum in the second half of the year as oil-driven inflation risks diminish. The Globe's Mark Rendell writes that the BOC's governing council maintained the policy rate at 2.25 per cent for the sixth consecutive time. The BOC has faced stagnant growth and rising oil prices due to the United States-Iran war. However, heading into this rate decision, conditions have improved on both fronts. "After stalling over the past year, economic growth looks to have resumed in Canada. While U.S. trade policy continues to be a headwind, consumers have been resilient and businesses are adapting," Governor Tiff Macklem said. Global oil prices have dropped from their April and May highs, reducing the risk of high gasoline prices leading to widespread inflation. Mr. Macklem said that the current interest rate is "appropriate" but noted significant economic uncertainty, particularly regarding fluctuating oil prices linked to developments in the Middle East. Financial markets expect the BOC to remain on hold over the next two meetings.