The Globe and Mail reports in its Monday edition that the Bank of Canada is expected to keep its interest rates this week. The Globe's Mark Rendell writes that since the U.S.-Iran war began in February, the BOC has faced conflicting pressures, with rising global oil prices increasing headline inflation and raising concerns about the need for rate hikes to curb price pressures. Economic growth faltered in the first quarter, sparking discussions about a "technical recession" and whether the BOC might need to lower borrowing costs to boost activity. Heading into Wednesday's rate decision, the outlook has improved, allowing the BOC to maintain the policy rate at 2.25 per cent for the sixth time. Benchmark oil prices have dropped from above $100 (U.S.) a barrel to around $70 (U.S.), similar to levels seen when the Strait of Hormuz was closed in February. At the same time, Canadian economic data have shown green shoots heading into the summer. Canada's GDP grew 0.5 per cent in April after a first quarter contraction, the trade surplus reached a four-year high in May due to high commodity prices, and the unemployment rate fell to 6.5 per cent in June. The economy is hardly thriving, but recession-talk has been shelved.