BoC Holds Interest Rates Steady Amid Trade War Fears

The Bank of Canada's governing council held its interest rate steady at 2.25% on September 2, citing concerns over the impact of a potential trade war with the US.

Fears that a renewed trade dispute could hamper business and consumer confidence weighed heavily on the decision-making process.

The central bank noted that while economic growth had picked up heading into the latest tariff wave, the overall impact on the economy was expected to be modest.

The Bank of Canada is also keeping an eye on high energy prices tied to the war in Iran and discussed the possible need to adjust the policy rate if cost pressures start to spread beyond gas pumps.