Bank of Canada Holds Steady Amid Trade Headwinds and Higher Energy Prices

The Bank of Canada maintained its interest rate at 2.25% in September, as widely expected, despite concerns over trade headwinds and higher energy prices.

According to RBC, the central bank views recent economic data as positive, with GDP growth bouncing back in Q2 and unemployment rates drifting lower into July.

However, Governor Macklem noted that monetary policy cannot offset the effects of tariffs or influence global energy prices, emphasizing the importance of fiscal policy in addressing targeted economic impacts.