Bank of Canada Holds Key Rate Steady Amid Global Uncertainty

The Bank of Canada held its benchmark interest rate steady at 2.25 per cent for the seventh straight time on Wednesday, as new U.S. tariffs and the ongoing war in Iran clouded the central bank's outlook.

Bank of Canada governor Tiff Macklem said that the persistence of the Middle East conflict has increased inflationary risks as global energy prices continue to float higher.

Macklem noted that while the economy was evolving broadly in line with the bank's forecasts, the central bank opted to keep the policy rate unchanged on Wednesday due to rising inflationary risks and uncertainty from trade tensions.