Canada Holds Key Interest Rate Amid Global Economic Uncertainty

The Bank of Canada kept its key interest rate at 2.25% on Wednesday, warning that inflation risks have grown due to ongoing global pressures.

Bank governor Tiff Macklem stated that policymakers will continue to monitor how Canada responds to these pressures and are 'prepared to adjust monetary policy as needed.'

Macklem added that inflation is currently running at 3%, which he described as 'too high', noting that the bank's commitment is to deliver a 2% inflation rate.