Bank of Canada Expected to Hold Interest Rate Amid Trade Uncertainty

The Bank of Canada is set to announce its interest rate decision on September 2. Experts predict that the bank will keep the current rate of 2.25% unchanged due to inflationary pressures and trade uncertainty.

Ratehub.ca vice-president of mortgages Jamie David said, 'The bank is currently in a bind, with escalating trade tensions threatening to slow economic growth, while inflationary pressures weigh against any easing.'

The current interest rate affects loan repayment fees for mortgage companies and money lenders. Financial experts expect the bank to hold rates steady as it assesses the impact of the trade war on both inflation and economic growth.