Bank of Canada Holds Rate Steady Amid US Trade War Uncertainty

The Bank of Canada has left its benchmark interest rate unchanged at 2.25 percent for the seventh straight time amid concerns about the impact of a trade war with the United States.

The decision was expected, given the recent economic rebound in Canada, where the gross domestic product expanded by 3.3 percent on an annual basis in the April-June quarter.

New tariffs imposed by US President Donald Trump have raised uncertainty about the sustainability of this recovery, according to a statement from the Bank of Canada.

The central bank warned that these measures could lead to higher consumer prices over time and increase costs for some businesses.