Bank of Canada Prepares for Sixth Interest Rate Decision Amid Economic Uncertainty

The Bank of Canada is set to make its sixth interest rate decision of the year today. Most economists and financial markets expect another rate hold from the central bank, with the policy rate remaining at 2.25 per cent.

The Canadian economy has been affected by US tariff uncertainty and higher global energy prices resulting from the war in Iran. Annual inflation rose to three percent in July, but the consumer price index has been volatile due to soaring gas prices over the spring.

The economy is showing signs of rebounding as Canada heads into a re-escalating trade war with the US, despite an ongoing strike among Bank of Canada security officers that prevents customary pre-release briefings for journalists.