Bank of Canada Holds Rates, Eurozone Inflation Rises, US Services Sector Remains Solid

The Bank of Canada maintained its policy rate at 2.25% but adopted a more hawkish stance, citing upside risks to inflation from higher energy prices. Meanwhile, Eurozone CPI inflation increased to 3.3% in August, driven by energy costs, though core inflation slightly declined to 2.4% year-over-year. In the U.S., August manufacturing and services conditions remained robust, with the ISM services index reaching a six-month high of 55.4 points, but price pressures persisted, with the prices paid index at its highest since August 2022.