Bank of Canada Holds Steady on Interest Rate Again

The Bank of Canada has kept its benchmark interest rate steady at 2.25 per cent for a seventh consecutive decision.

This move was widely expected by economists, who believed that the central bank would wait to see how new tariffs between Canada and the United States affect growth and inflation before adjusting the policy rate.

The Bank of Canada uses its policy rate to control inflation and support economic growth. Inflation rose to three per cent in July, largely driven by volatile gas prices due to the war in Iran.