The Bank of Canada is holding its key interest rate at 2.75 percent, warning that uncertainty around U.S. tariffs is diminishing Canada’s economic growth prospects and raising inflation expectations.
“The path for U.S. trade policy remains highly unpredictable. There is also considerable uncertainty about the impacts of a trade war on our economy,” Bank of Canada Governor Tiff Macklem said in his opening remarks on April 16.
Macklem said given U.S. President Donald Trump’s decision-making around tariffs, the bank decided to hold its policy rate unchanged in order to “gain more information about both the path forward for U.S. tariffs and their impacts.”…