Bank of Canada Stays Put Amid Escalating Trade War

The Bank of Canada is set to make its interest rate decision on Wednesday, amidst renewed trade war pressures between Canada and the US.

The central bank has kept its benchmark rate at 2.25 per cent for nearly a year now, but recent tariff volleys have changed the economic context.

Economists believe the Bank of Canada will stick to the status quo, with financial market odds showing a 99 per cent chance of a seventh straight hold in the policy rate.

Bank of Canada governor Tiff Macklem has warned that any tightening of trade restrictions between Canada and the US might push monetary policymakers to ease the policy rate.