Bank of Canada Cautious Over Trade Dispute Impact

The Bank of Canada's decision to hold its key policy rate steady at 2.25% on September 2 was influenced by concerns over a potential trade dispute with the US, according to a summary of the governing council's deliberations.

The central bank's focus on maintaining price stability and guiding future rate decisions based on inflation forecasts is a key takeaway from the document.

The Bank of Canada took note of the impact of 50% tariffs imposed by the US on $28 billion worth of Canadian goods, which could potentially hamper business and consumer confidence.