Canada Holds Interest Rates Steady Amid Escalating Trade War

The Bank of Canada is likely to keep borrowing costs steady at its policy meeting on Wednesday, as the escalating trade war between Canada and the US adds new uncertainty to the economic recovery.

Economists expect policymakers led by Governor Tiff Macklem to maintain the policy rate at 2.25% for the seventh straight time. The decision comes amid rising inflation risks due to the ongoing trade tensions with the US.

The country's relationship with its top trading partner has changed dramatically since the last policy meeting in July, and this shift is expected to have a significant impact on Canada's economic growth and inflation.