Bank of Canada Keeps Interest Rate Steady Amid Inflation and Economic Growth Concerns

The Bank of Canada has decided to hold its benchmark interest rate at 2.25% for a seventh consecutive decision.

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

Inflation rose to three percent in July due to volatile gas prices following the war in Iran. Meanwhile, economic growth has shown signs of rebounding after stagnating for much of the last year.