BoC Holds Key Rate Amid Fresh US Tariff Fears

The Bank of Canada's decision to hold its key policy rate steady at 2.25% was influenced by concerns over the impact of a fresh US tariff dispute on business and consumer confidence.

The central bank released a summary of its deliberations, which revealed that monetary policymakers were worried about the potential effects of the trade dispute on household spending, business investment, and hiring.

Just days before the Bank of Canada's rate decision, the US imposed 50% tariffs on $28 billion worth of Canadian goods, triggering a series of retaliatory actions including counter-tariffs from Canada and planned import bans from the US.