Bank of Canada Keeps Rates Steady Amid Escalating Trade Tensions

The Bank of Canada held interest rates steady at 2.25% for a seventh consecutive meeting, as escalating trade tensions between Canada and the US threaten economic growth and create new inflation pressures.

According to Bloomberg's survey, economists had expected the bank to keep rates unchanged. This decision was also reflected in swap markets, where traders had priced in a hold on interest rates.

The Bank of Canada, led by Governor Tiff Macklem, made this decision despite the ongoing trade war between the US and Canada, which is clouding growth prospects. The bank's officials are closely monitoring the situation to assess its impact on the Canadian economy.