BoC Holds Steady Amid Global Uncertainties

The Bank of Canada maintained its benchmark interest rate at 2.25% on Wednesday, marking the seventh consecutive hold as the central bank assesses the impact of ongoing global uncertainties.

Bank of Canada governor Tiff Macklem stated that the persistence of the Middle East conflict has increased inflationary risks due to higher global energy prices, which cannot be offset by monetary policy.

Macklem emphasized that while the trade dispute with the United States poses a risk to Canada's economic rebound, he does not expect a 'large direct impact' from the new tariffs imposed on Canadian goods. However, targeted sectors could face significant challenges.