Bank of Canada Holds Fire on Interest Rate Amid Trade War Uncertainty

The Bank of Canada is set to maintain its interest rate at 2.25 per cent on Wednesday, despite growing concerns over the impact of a renewed trade war on the economy.

Economists expect policymakers will stick to their wait-and-see approach, as they navigate a period of economic uncertainty caused by higher oil prices and the ongoing U.S.-Canada trade dispute.

The bank has been on hold since December, trying to gauge how prices and the economy react to the escalating trade war. While some experts believe the bank may raise interest rates next year, most economists still predict no change in the coming weeks.