Bank of Canada Holds Rates Amid Ongoing Global Risks

The Bank of Canada has made its latest decision on interest rates, keeping them steady at 2.25%. This move is attributed to ongoing risks from the Middle East conflict and new US tariffs.

The bank noted that Canadian economic activity has strengthened, with a GDP growth rate of 3.3% in Q2 and a slight improvement in the labor market.

However, inflation remains near 3%, mainly due to higher gasoline prices.

The Bank of Canada warned that prolonged high oil prices and tariffs could increase inflation risks and affect the recovery's sustainability.