Bank of Canada Holds Interest Rate Steady Amid Ongoing Trade Tensions

The Bank of Canada is expected to maintain its policy interest rate at 2.25% on Wednesday, despite recent trade tensions between the US and Canada.

Economists believe policymakers will stick to their wait-and-see approach due to the uncertain economic outlook.

The bank has kept rates steady since December as it navigates a period of economic uncertainty caused by higher oil prices and now the ongoing trade spat.

TD economist Andrew Hencic said, 'With where inflation and (economic) growth are tracking, we don't think that there's justification for them to change policy.'