Bank of Canada Holds Firm on Interest Rate Amid Trade Uncertainty

The Bank of Canada is expected to hold its interest rate at 2.25% when it makes its next announcement on September 2, according to financial experts.

Ratehub.ca vice-president of mortgages Jamie David said in an emailed press release that the bank is likely to keep rates steady due to inflationary pressures and trade uncertainty.

The Consumer Price Index rose to three percent in July from 2.8 percent, which may not provide enough reason for a rate cut, David explained.

He noted that the bank is currently in a bind, weighing the impact of the escalating trade war on both inflation and economic growth.