Bank of Canada Holds Rate Steady Amid Global Uncertainty

The Bank of Canada left its overnight rate unchanged at 2.25% on Wednesday, citing uncertainty and risk to the economy's recovery.

This decision was influenced by several factors, including the ongoing conflict in the Middle East that has kept energy prices high, as well as new US tariffs set to come into effect on September 8.

The bank noted that financial conditions have tightened since July, with long-term bond yields increasing globally and the Canadian dollar appreciating slightly due to US-dollar weakness.