Canada Holds Interest Rate Steady Amid Trade War Uncertainty

The Bank of Canada made its sixth interest rate decision of the year and held the benchmark interest rate steady at 2.25 per cent for a seventh consecutive decision.

The central bank has been on the sidelines since late last year, with most economists and financial markets favouring another rate hold from the central bank today.

The Bank of Canada uses the policy rate to keep a lid on inflation and support economic growth when prices are contained. Inflation rose to three per cent in July after the war in Iran drove volatile gas prices over the spring and summer.