Bank of Canada Holds Overnight Rate Amid Trade Uncertainty

The Bank of Canada has decided to keep its overnight rate target at 1¼ per cent. This decision follows recent data indicating an upward revision to the outlook for the US economy, although ongoing uncertainty about trade policies is still dampening global business investment.

Additionally, stresses are developing in some emerging market economies due to higher-than-expected oil prices. The bank notes that these developments were not factored into its April Monetary Policy Report (MPR) forecast.