Bank of Canada Keeps Rate Steady Amid Global Uncertainties

The Bank of Canada kept its benchmark interest rate steady at 2.25% on Wednesday, as global tensions and trade uncertainties clouded the central bank's outlook.

Bank of Canada Governor Tiff Macklem said that while global energy prices continue to rise due to the ongoing war in Iran, this increased inflationary risk can be managed by ensuring price stability in Canada.

Macklem noted that monetary policy cannot offset the effects of tariffs or influence global energy prices, but emphasized that the Bank of Canada will assess the sustainability of the economic rebound and the outlook for inflation to adjust its monetary policy as needed.