Bank of Canada Holds Interest Rate Steady Amid Trade War Uncertainty

The Bank of Canada is expected to keep its key interest rate steady at 2.25% on Wednesday, despite concerns over the impact of a renewed trade war between the US and Canada.

Economists believe policymakers will maintain their wait-and-see approach, as new tariffs and countermeasures threaten to slow economic growth and put pressure on inflation.

The bank has been on the sidelines since December, navigating economic uncertainty caused by higher oil prices from the US-Iran war and now the trade spat.