Bank of Canada Holds Interest Rates Amid Trade Tensions

The Bank of Canada has decided to hold its interest rates steady at 2.25% amid ongoing trade tensions between Canada and the US.

This decision comes as a result of the retaliatory tariff blitz that followed the collapse of US trade negotiations, which complicated the central bank's monetary policy decisions.

Canadian GDP growth accelerated in the second quarter, but inflation is on the rise. The Bank of Canada has cited elevated energy prices resulting from the ongoing conflict in the Middle East as a concern.