Bank of Canada Holds Key Rate Amid Trade War and Inflation Fears

The Bank of Canada has decided to hold its key interest rate at 2.25%, despite concerns over inflation and the ongoing trade war between Canada and the US.

Bank Governor Tiff Macklem stated that there are 'multiple risks in play' and that policymakers must consider various factors when making decisions about monetary policy.

The move was widely expected by economists, with many anticipating a rate hold due to the current economic conditions. The Bank of Canada has now kept its interest rate steady for seven consecutive decisions.