The Globe and Mail reports in its Friday edition that the Bank of Canada kept its interest rate at 2.25 per cent this week. The Globe's Salmaan Farooqui writes that Governor Tiff Macklem noted that while rising oil prices could potentially lead to broader inflation, there is currently no evidence to suggest this, though it could result in a rate hike. Meanwhile, renegotiations for the United States-Mexico-Canada Agreement trade deal are set to begin this summer, and Mr. Macklem has said there are concerns that Canada faces turbulence as it aims to preserve the existing trade agreement. He said the BOC will need to cut rates to support the Canadian economy if the U.S. imposes new restrictions. For now, it is taking a wait-and-see approach, but it means that variable mortgages come with the unusual possibility of becoming both more expensive and cheaper in the coming months. Looking to the long term, however, Desjardins economist Royce Mendes says the BOC will eventually look to raise rates to 2.75 per cent, which is the midpoint of the bank's estimated neutral range -- the range that neither stimulates nor slows the economy. Mr. Mendes says, "Our expectation is that those rate increases aren't in the cards until 2027."