Bank of Canada Holds Rates Amid Trade War Uncertainty

The Bank of Canada is expected to keep its key policy rate unchanged at 2.25% on Wednesday, despite strong economic growth.

Canada's economy grew at an annualized rate of 3.3% in the second quarter, above the central bank's 2.5% forecast.

The strong growth was driven by exports and domestic demand, but a renewed trade war with the United States is clouding the outlook.

Business investment and household spending rebounded, while inflation accelerated to 3% in July, largely due to higher gasoline prices.