Bank of Canada Holds Interest Rates Amid Ongoing Trade Tensions

The Bank of Canada is expected to keep its overnight rate at 2.25% at its upcoming policy meeting, according to a Reuters poll of economists.

The survey was conducted after Canadian Prime Minister Mark Carney walked away from tariff negotiations on August 22 and announced retaliatory tariffs and support measures for affected businesses.

All 35 economists surveyed expect the rate to stay at 2.25% through the rest of this year and until the third quarter of next year, with a hike to 2.50% forecast for the fourth quarter of 2026.