Bank of Canada Sticks with 2.25% Rate Amid Tariff Uncertainty

The Bank of Canada maintained its key policy rate at 2.25% on Wednesday, as expected.

However, the central bank acknowledged that new US tariffs have increased uncertainty and risks to inflation, which has risen above the bank's target of 3% in July.

Economists say the conflicting risks from US and Canadian tariff hikes give the Bank of Canada room to wait and assess their impact before changing borrowing costs.