BoC Holds Rates Unchanged Amid Renewed Trade Uncertainty

The Bank of Canada (BoC) left its policy rate unchanged at 2.25%, in line with market expectations.

In a statement, the BoC acknowledged that Canada's economy posted stronger-than-expected growth in the second quarter, supported by firm domestic demand and a rebound in exports.

The Bank also noted that renewed trade uncertainty will continue to weigh on business and consumer confidence, while excess supply in the economy remains a concern.

On inflation, the BoC said that headline CPI inflation has moved somewhat higher in recent months (around 3%), reflecting the impact of higher energy prices, but underlying price pressures remain broadly contained.