Bank of Canada Holds Interest Rate Steady Amid Trade War and Middle East Tensions

The Bank of Canada has maintained its key interest rate at 2.25% for the seventh consecutive time due to concerns about inflation triggered by the ongoing war in the Middle East and the Canada-US trade war.

Bank of Canada Governor warns that inflation risks have risen with higher fuel costs and new US tariffs, which could further exacerbate the economic uncertainty.

The decision not to raise interest rates is a cautious move, as it aims to mitigate potential shocks to the economy while keeping borrowing costs low for consumers and businesses.