Bank of Canada Holds Interest Rate Amid Trade Uncertainty

The Bank of Canada has decided to hold its benchmark interest rate at 2.25% for the seventh consecutive time, despite new tariffs and the ongoing conflict in Iran clouding the central bank's outlook.

Bank of Canada governor Tiff Macklem stated that the persistence of the Middle East conflict has increased inflationary risks due to higher global energy prices.

Macklem also mentioned that the re-escalation of the trade dispute with the United States threatens Canada's economic rebound, potentially leading businesses to delay investment and hiring decisions until the trade situation becomes clearer.