Bank of Canada Holds Firm Amid Escalating Trade War Dilemma

The Bank of Canada is expected to maintain its borrowing costs at 2.25% on Wednesday, according to economists and markets.

This decision comes as the trade war with the US escalates, posing a new dilemma for Governor Tiff Macklem and his governing council.

Nathan Janzen and Claire Fan from Royal Bank of Canada wrote that heightened growth risks from new US tariffs and inflation risks from high oil prices have created discomfort for the Bank of Canada since their last meeting in July.