Bank of Canada Holds Interest Rate Steady Amid Trade Uncertainty

The Bank of Canada (BoC) has kept its benchmark interest rate steady at 2.25 per cent for the seventh consecutive time, citing ongoing trade uncertainty and renewed tariff threats.

In a press release, the central bank noted that the global economy has shown resilience in the face of geopolitical headwinds, with growth broadly consistent. However, high oil prices and elevated refinery margins continue to drive inflation in most countries.

The Canadian economy picked up in the second quarter, with GDP growing at 3.3 per cent after a sluggish first quarter. Consumer spending posted solid gains, while housing activity recovered somewhat, and exports and business investment rose sharply.