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 uncertainties in the global trade environment, particularly due to unpredictable US tariff policies.

Impact of Global Trade Tensions

The central bank highlighted that the ongoing trade tensions, especially between the US and Canada, are negatively affecting consumer and business confidence. These tensions are also hindering the recovery of the labor market in Canada.

Future Outlook

"The Governing Council is closely monitoring the effects of a weaker economy on inflation and the upward pressures from higher costs. Our priority is to ensure that Canadians maintain confidence in price stability during these tumultuous times. We are committed to supporting economic growth while keeping inflation under control," stated the bank in its report.