Bank of Canada Stands Pat as Trade War and Iran Conflict Fuel Inflation Fears

The Bank of Canada held interest rates steady at 2.25% for a seventh consecutive meeting, following expectations from economists and traders.

The decision was made by officials led by Governor Tiff Macklem on Wednesday, September 2, 2026, amidst growing concerns about inflation risks fueled by the trade war with the US and the Iran conflict.

The Bank of Canada emphasized that these external factors pose a significant threat to price stability and economic growth in Canada.