Bank of Canada Holds Interest Rate Amid Ongoing Global Uncertainty

The Bank of Canada has kept its policy rate unchanged at 2.25%, despite economic growth and inflation evolving broadly as forecast in the July Monetary Policy Report.

The decision to maintain the interest rate was influenced by ongoing geopolitical tensions, particularly the conflict in the Middle East, which is keeping energy prices high.

Canada's economy has shown resilience in the face of global headwinds, with growth consistent with projections. However, uncertainty remains high due to new US tariffs and threats of further action.

The Bank of Canada noted that inflation has been hovering around 3% in recent months, mainly driven by persistently higher gasoline prices.