Bank of Canada Maintains Policy 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 Fueled by US Tariff Policy

The central bank highlighted the unpredictable nature of US tariff policy as a significant source of uncertainty. This unpredictability has not only dampened economic growth prospects but also led to heightened inflation expectations.

Impact on Consumer and Business Confidence

Trade tensions, particularly 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.

Bank's Commitment to Economic Stability

The Bank of Canada emphasized its commitment to monitoring both the downward pressures on inflation from a weaker economy and the upward pressures from higher costs. "Our focus is on ensuring Canadians' confidence in price stability during these turbulent times," the bank stated, reaffirming its dedication to supporting economic growth while keeping inflation under control.