Bank of Canada Holds Interest Rate Amid Inflation Worries

The Bank of Canada held its key interest rate at 2.25 per cent on Wednesday, citing concerns about inflation risks due to high energy prices and ongoing US tariffs.

The central bank also maintained the Bank Rate at 2.5 per cent and the deposit rate at 2.20 per cent in a decision that reflects uncertainty over the global economy's resilience to geopolitical headwinds.

The bank acknowledged that the global economy has shown some stability, with growth broadly in line with its July Monetary Policy Report, but noted that inflation remains high in most countries due to persistent oil prices and elevated margins for refined energy products.