The Bank of Canada has largely kept to the sidelines as it tries to get a sense of how U.S. tariffs will impact the economy—and some economists think it might just stay there.
After a quarter-point cut in March, the central bank held its benchmark interest rate steady at 2.75 percent in April and June.
With last month’s jobs figures showing a surprise gain and core inflation levels holding steady at around three percent, economists now broadly expect the central bank will continue its holding pattern at its next decision on July 30.
The central bank lowers its policy rate when it wants to encourage spending and boost the economy but keeps borrowing costs elevated when there are concerns inflation could pick up steam….