Concerns that worsening trade tensions with the United States could weaken Canadian consumer and business confidence factored into the Bank of Canada’s decision this month to hold its benchmark rate at 2.25 percent, newly released documents show.
The central bank published a summary of the deliberations that led it to keep its benchmark interest rate unchanged on Sept. 2, rather than raising or lowering it. The decision marked the seventh consecutive hold and was widely expected by economists.
The Bank’s Governing Council began its policy meetings on Aug. 25, three days after the United States implemented 50 percent tariffs on approximately $28 billion worth of Canadian goods….