Bank of Canada Holds Fire on Interest Rate Hike Amid Trade Tensions

The Bank of Canada is expected to keep its policy interest rate steady at 2.25% on Wednesday, despite recent trade tensions between the US and Canada.

Economists believe policymakers will maintain their wait-and-see approach, navigating a period of economic uncertainty caused by higher oil prices from the US-Iran war and ongoing trade spat.

TD economist Andrew Hencic told the Star that 'with where inflation and (economic) growth are tracking, we don't think that there's justification for them to change policy.'