Canada Holds Interest Rate Steady Amid Ongoing Trade Uncertainty

The Bank of Canada is set to make its sixth interest rate decision of the year on Wednesday morning. Most economists and financial markets favour another rate hold from the central bank today, keeping the policy rate steady at 2.25 per cent since late last year.

The economy is coping with uncertainty surrounding U.S. tariffs and higher global energy prices due to the war in Iran. Annual inflation rose to three per cent in July, but the consumer price index has been volatile since the Middle East conflict sent gas prices soaring over the spring.

The Bank of Canada's security officers are on strike, preventing a customary lockup with journalists before releasing the rate decision.