Bank of Canada Maintains Interest Rate at 2.75%

In a move that reflects cautious optimism, the Bank of Canada announced on Wednesday that it would keep its policy rate steady at 2.75%. This decision comes at a time when global trade tensions, particularly between the US and Canada, are creating waves of uncertainty across the economic landscape.

Uncertainty Fuels Economic Caution

The central bank pointed to unpredictable US tariff policies as a significant source of uncertainty, which has not only dampened economic growth prospects but also raised inflation expectations. These tensions are undermining consumer and business confidence, further complicating the labor market's recovery in Canada.

A Balanced Approach to Inflation and Growth

"Our focus remains on navigating the delicate balance between supporting economic growth and ensuring inflation remains under control," the Bank of Canada stated. The Governing Council is closely monitoring the impact of both downward pressures on inflation from a weaker economy and upward pressures from higher costs, aiming to maintain Canadians' confidence in price stability during these turbulent times.