Bank of Canada Expected to Hold Line as Trade War Clouds Economic Outlook

The Bank of Canada is poised to maintain its key interest rate at 2.25% on Wednesday, according to financial markets and economists.

With a 97% likelihood of no change in the policy rate, governor Tiff Macklem's announcement will be closely watched for any clues on how policymakers plan to address the economic impact of the US tariffs and Ottawa's countermeasures.

The central bank has kept its rate steady since December, when it signalled that 2.25% was 'at about the right level' to keep inflation close to target while supporting the economy.