Bank of Canada Maintains Interest Rate at 2.75%

The Bank of Canada has announced its decision to keep the policy rate unchanged at 2.75%, citing ongoing global trade tensions and economic uncertainties as key factors influencing this decision.

Impact of US Tariff Policy on Canadian Economy

The central bank highlighted the unpredictable nature of US tariff policies as a significant source of uncertainty, which has not only dampened economic growth prospects but also raised inflation expectations. The tensions, especially between the US and Canada, are adversely affecting consumer and business confidence and hindering the recovery of the labor market.

Future Focus: Balancing Growth and Inflation

"The Governing Council is committed to carefully evaluating the timing and impact of both the downward pressures on inflation from a weaker economy and the upward pressures from increased costs. Our priority is to maintain Canadians' confidence in price stability during these turbulent times, ensuring economic growth is supported while keeping inflation under control," the bank stated in its report.