Bank of Canada Interest Rate Decision Expected on September 2

The Bank of Canada is set to announce interest rates on September 2. In July, the central bank held its key interest rate at 2.25 per cent, citing signs of improvement in the economy and easing inflation expectations.

However, the continued risks and uncertainties due to the Middle East war and U.S. trade policy were also highlighted by the BoC. Oil prices remain lower than their peak in April, but the situation in the Middle East remains volatile, the bank stated.

NerdWallet Canada's mortgage and financial expert Clay Jarvis predicts that the BoC will hold its 2.25 per cent overnight rate despite the 'reignited trade war' with the U.S., which he believes is too fresh to impact the Bank's thinking.