Bank of Canada Stays Put on Interest Rate Amid Trade Tensions

The Bank of Canada has maintained its key interest rate at 2.25 per cent for the seventh consecutive decision, despite ongoing trade uncertainty and tensions in the Middle East.

Bank of Canada Governor Tiff Macklem stated that the conflict in Iran and the region has introduced increased risks to inflation, which led to the decision to hold the rate steady.

Macklem also mentioned that renewed tariff battles and uncertainty may lead businesses to delay investing or hiring until the future is clearer.