Bank of Canada holds interest rate as trade war clouds outlook
The Bank of Canada has maintained its key interest rate at 2.25% due to economic uncertainty stemming from trade tensions and regional conflicts. Officials expressed concern that persistent inflation and global instability could threaten the sustainability of the current economic recovery.
Why it matters
Interest rate decisions directly impact consumer borrowing costs and business investment, serving as a critical indicator of national economic health.
Copy Link Email X Reddit Pinterest LinkedIn Tumblr Bank of Canada holds interest rate at 2.25% as trade war clouds outlook Rising uncertainty has called the sustainability of the economy's rebound into question
Join the conversation Bank of Canada governor Tiff Macklem announced the interest rate decision Wednesday. Photo by Blair Gable/Postmedia Article content The Bank of Canada on Wednesday held its key interest rate at 2.25 per cent for the seventh consecutive time, which was widely expected by economists due to the ongoing uncertainty from rising trade tensions and renewed hostilities in the war on Iran.
Create an account or sign in to continue with your reading experience.
The central bank said recent data reaffirm a “broadening recovery” in Canada’s economy and that second-quarter growth was broadly in line with July expectations, but the risks of higher and persistent inflation have increased.
Get smarter about the news
Sign up free for a feed built around what you actually care about, Dive Deeper research on any story, and the full text of every article.
Create free accountAlready have an account? Sign in