Trade War Uncertainty Clouds Bank of Canada's Interest Rate Decision

The Bank of Canada is set to make its interest rate decision on Wednesday, amidst renewed trade war pressures with the United States. The central bank has kept its benchmark rate at 2.25 per cent for nearly a year now.

Before trade talks between Canada and the US fell apart earlier this month, economists had widely expected the Bank of Canada to stick to the sidelines for another rate hike.

The escalating trade war is casting an uncertain light over Wednesday's decision, leaving markets wondering whether the bank will adjust its interest rates in response.