Bank of Canada Holds Rate at 2.25% Amid Global Economic Uncertainty

The Bank of Canada has held its benchmark interest rate steady at 2.25% for the seventh consecutive time, citing uncertainty in the global economy.

Bank of Canada Governor Tiff Macklem stated that the ongoing war in Iran and new U.S. tariffs are increasing inflationary risks, with global energy prices continuing to rise.

Macklem emphasized that monetary policy cannot offset the effects of tariffs or influence global energy prices, but can ensure global developments do not jeopardize price stability in Canada.