Bank of Canada Holds Rates Amid Escalating Trade Dispute
The Bank of Canada kept its key policy rate unchanged at 2.25% on Wednesday, as expected.
The decision comes amid growing trade tensions between Canada and the US, with new tariffs taking effect after the second-quarter GDP data.
The bank warned that new U.S. tariffs and Canadian counter-tariffs will raise costs for some businesses and could feed into consumer prices over time.