Bank of Canada Holds Rates Amid Trade Tensions

The Bank of Canada is expected to maintain its interest rate at 2.25 percent on Wednesday, despite concerns over inflation and trade tensions.

Economists are predicting an easing bias from the bank, which could signal a potential rate cut in the future.

The Canadian government has imposed counter-tariffs on US goods, effective September 8, six days after the Bank of Canada's next interest rate announcement.

According to the Financial Post, the value of affected goods is approximately $28 billion, and the tariffs have darkened the growth outlook.