Bank of Canada Stands Pat Amid Geopolitical Tensions

The Bank of Canada has kept its key interest rate steady at 2.25 per cent amid ongoing geopolitical tensions.

The bank's decision was influenced by several factors, including the war in Iran, which continues to drive up energy prices, new American tariffs on Canadian goods, and the breakdown of trade talks between the two countries.

Canada's economy has been showing signs of recovery, with real Gross Domestic Product growing by 3.3 per cent in the second quarter.

The bank also noted that inflation remains at around three per cent, largely due to higher gas prices.