Bank of Canada Holds Key Rate at 2.25% Amid Trade Tensions

The Bank of Canada has decided to keep its key policy rate at 2.25%, a decision that was widely anticipated by economists.

This is the eleventh consecutive month that the benchmark interest rate has remained unchanged, despite growing trade tensions between Canada and the US.

The bank's statement noted that new tariffs imposed by the US could have a negative impact on growth prospects, while also raising costs for some businesses and potentially feeding into consumer prices over time.