Bank of Canada Holds Rates Steady Amid Ongoing Trade Tensions

The Bank of Canada is expected to keep its overnight rate at 2.25% for another year, according to a Reuters poll of economists.

This decision comes as policymakers continue to monitor signs of rising inflation and weaker economic activity due to ongoing trade tensions with the United States.

Canadian Prime Minister Mark Carney recently walked away from the latest round of tariff negotiations and announced retaliatory tariffs and support measures for affected businesses.

Nearly half of economists polled, 47%, believe the Bank will raise rates at least once by end-Q2 2027.