Bank of Canada Holds Interest Rate Steady Amid Global Economic Uncertainty

The Bank of Canada has maintained its policy interest rate at 2.25%.

This decision was made in light of various global and domestic economic factors, including high energy prices due to ongoing conflict in the Middle East and new U.S. tariffs on Canadian goods.

According to the central bank, these factors pose risks to Canada's economic growth and inflation outlook.

The Bank of Canada reported that Canadian GDP grew by 3.3% in the second quarter, with broad-based gains across consumption, housing activity, exports, and business investment.