Bank of Canada Maintains Interest Rate at 2.75%

In a recent announcement, the Bank of Canada has decided to keep its policy rate unchanged at 2.75%. This decision comes amidst growing concerns over global trade tensions and their impact on the Canadian economy.

Uncertainty from US Tariff Policies

The bank highlighted the unpredictable nature of US tariff policies as a significant factor contributing to economic uncertainty. These policies have not only dampened growth prospects but have also led to higher inflation expectations.

Impact on Consumer and Business Confidence

Trade tensions, especially between the US and Canada, are adversely affecting consumer and business confidence. Furthermore, these tensions are hindering the recovery of the labor market in Canada.

Commitment to Price Stability

The Bank of Canada remains committed to ensuring price stability during these turbulent times. "Our focus is on supporting economic growth while keeping inflation under control," the bank stated, emphasizing its dedication to fostering confidence among Canadians.