Bank of Canada Holds Rates Amid Tariff-Induced Uncertainty

The Bank of Canada kept its key policy rate steady at 2.25% on Wednesday, as expected by many economists.

The decision was made despite the country's strong economic growth, which rebounded to an annualized rate of 3.3% in the second quarter.

However, the bank noted that new U.S. tariffs have increased the risks to inflation and made growth prospects more uncertain.

The latest 50% tariffs on some Canadian imports took effect after the second-quarter GDP data, and Canada's retaliatory tariffs will take effect next week.