Canada Holds Interest Rate Amid Ongoing Global Uncertainty

The Bank of Canada announced on Wednesday that it will maintain its benchmark interest rate at 2.25 percent.

Citing recent data, the central bank noted a broadening recovery in Canada's economy, but emphasized that uncertainty is high and new U.S. tariffs pose risks to the sustainability of this growth.

The Bank of Canada highlighted two key concerns: the ongoing Middle East conflict and its impact on oil prices, which could lead to inflation; and the potential for spillover effects from high oil costs to other goods and services.