BoC Holds Rates Amid Ongoing Trade Tensions

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

This decision comes as trade tensions with the United States remain high, following Canadian Prime Minister Mark Carney's walkout from tariff negotiations and the announcement of retaliatory tariffs and support measures for affected businesses.

Despite inflation being at the top of the BoC's 1-3% target range in July, stable core inflation suggests demand remains weak, giving the central bank room to wait before raising rates.

All 35 economists polled expected the overnight rate to stay on hold for the rest of this year and until the third quarter of next year. The BoC is forecast to raise the rate to 2.50% in the fourth quarter of next year, unchanged from expectations in a July poll.