BOC Keeps Rates Steady Amid Gold Price Surge on Tariff Fears

The Bank of Canada kept its key overnight rate steady at 2.25% on Wednesday, as expected.

In a statement, the bank noted that Canadian financial conditions have tightened since July, citing higher long-term bond yields and a slightly stronger Canadian dollar due to US-dollar weakness.

Gold prices surged to a session high of CAD $6,087.64 per ounce in the minutes before the announcement, with the yellow metal continuing to trade near its highs afterward.

The bank also warned that new US tariffs and threats of further action pose risks to Canada's economic recovery, particularly if high oil prices persist and lead to inflation spillover.