Bank of Canada Keeps Overnight Rate Steady Amid Trade Uncertainty

The Bank of Canada announced it is keeping its target for the overnight rate at 1¼ per cent. This decision maintains the Bank Rate at 1½ per cent and the deposit rate at 1 per cent.

The global economy's performance aligns with the Bank's April Monetary Policy Report (MPR) forecast. However, recent data indicate some positive developments for the US economy, while uncertainty about trade policies is affecting business investment globally.

The Bank also noted that oil prices are higher than expected, largely due to geopolitical factors.