BOC Holds Rates Steady Amid Rising Tariffs Uncertainty

The Bank of Canada (BOC) held its policy interest rate at 2.25% in response to evolving economic data and rising uncertainty about the sustainability of the rebound.

The central bank, led by Governor Tiff Macklem, cited new US tariffs on Canadian exports as a risk to growth prospects, but noted that affected products account for only 5% of Canadian exports to the US.

Macklem emphasized that monetary policy cannot offset the effects of tariffs or influence global energy prices, but the bank will monitor inflation closely and adjust its policy as needed to keep price stability in Canada.