The Bank of Canada held their interest rate at 2.75 per cent on Wednesday — a move in line with what economists were predicting ahead of the decision.
The central bank says the Canadian economy is showing signs of resilience in the face of tariffs from the United States, but U.S. trade policy remains unpredictable.
This comes after the bank chose to hold rates in April and June, citing global tariff uncertainty.
Bank of Canada governor Tiff Macklem said that deals made between the U.S. and other world powers in recent weeks have reduced the risk of a “severe and escalating” global trade war, and the impact so far has been less severe than originally feared.
But, with certain sectors being hit hard by tariffs, Macklem said challenges remain.
More to come