Forex
Bank of Canada Holds Rate at 2.25%, Cites Tariff Risks
The Bank of Canada maintained its key policy rate at 2.25% on Wednesday, as widely expected.
In a statement, the bank noted that the risks to inflation have grown while new U.S. tariffs make growth prospects more uncertain.
The bank cited U.S. President Donald Trump's latest 50% tariffs on some Canadian imports and Canada's retaliatory tariffs, which take effect next week, as factors contributing to increased costs for businesses and potentially higher consumer prices over time.