The Bank of Canada decided to hold its policy rate unchanged at 2.75%, the central bank announced in a statement on Wednesday.
The lender said the unpredictable US tariff policy fueled uncertainty, lowered economic growth prospects, and pushed up inflation expectations. The central bank stressed that global trade tensions, particularly between the US and Canada, are dragging down consumer and business confidence and obstructing the labor market recovery in the country.
"Governing Council will continue to assess the timing and strength of both the downward pressures on inflation from a weaker economy and the upward pressures on inflation from higher costs. Our focus will be on ensuring that Canadians continue to have confidence in price stability through this period of global upheaval. This means we will support economic growth while ensuring that inflation remains well controlled," the bank noted in the report.
