Bank of Canada Holds Steady on Interest Rate Amid Trade Uncertainty

The Bank of Canada has maintained its benchmark interest rate at 2.25 per cent for the seventh consecutive time, citing concerns over inflation and trade uncertainty.

Bank of Canada governor Tiff Macklem stated that the ongoing war in Iran has increased inflationary risks due to rising global energy prices. He also noted that a renewed trade dispute with the United States threatens Canada's economic rebound.

The central bank acknowledges that monetary policy cannot offset the effects of tariffs or influence global energy prices, but aims to ensure that external developments do not jeopardize price stability in Canada.