Bank of Canada Holds Interest Rate Steady Amid Rising Inflation Concerns

The Bank of Canada kept its key interest rate at 2.25 per cent on Wednesday, citing risks around inflation outlook amid ongoing global pressures.

Bank governor Tiff Macklem said that while the economy has performed largely in line with expectations, policymakers are prepared to adjust monetary policy as needed.

Macklem cautioned that policymakers will continue to monitor Canada's response to global events and warned of growing inflation risks due to the conflict in the Middle East and the US trade war.