Bank of Canada Holds Interest Rate Steady Amid Trade War Uncertainty

The Bank of Canada held its benchmark interest rate at 2.25% for the seventh consecutive meeting, as expected by economists due to concerns over a fresh trade war outbreak with the US.

Bank of Canada governor Tiff Macklem made the announcement on Wednesday, citing the risk of higher inflation and uncertainty in the global economy.

The hold was seen as a cautious move by policymakers to mitigate potential risks to the country's economic recovery.