Bank of Canada Keeps Interest Rate Steady Amid Ongoing Geopolitical Tensions

The Bank of Canada has maintained its key interest rate at 2.25 per cent for the fourth consecutive time since October 2025.

This decision was made amid ongoing geopolitical tensions, including the war in Iran and new American tariffs on Canadian goods.

The bank cited high energy prices as a concern, noting that inflation remains around three per cent due to higher gas costs.

Despite these challenges, the Bank of Canada is optimistic about the economy's resilience, with real Gross Domestic Product growing by 3.3 per cent in the second quarter and employment improving.