BoC Expected to Hold Rates Amid Trade Tensions

The Bank of Canada is expected to keep its overnight rate at 2.25% for another year, according to a Reuters poll of economists.

This decision comes after Canadian Prime Minister Mark Carney walked away from trade talks with the United States and announced retaliatory tariffs.

Economists believe that the central bank has room to wait before raising rates due to stable core inflation and an expected economic recovery.

While some economists raised concerns about added inflation pressure stemming from recent currency weakness, others expect the trade war to mainly be a drag on gross domestic product growth in Canada.