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Bank of Canada holds policy rate at 2.25% amid trade and geopolitical risk

The BoC cited elevated uncertainty from Middle East tensions and a breakdown in Canada-U.S. trade talks.

Reported · Written up by our desk · Central Banks

The Bank of Canada kept its policy rate unchanged at 2.25%, meeting market expectations, according to Action Forex.

In its opening statement, the central bank said ongoing conflict in the Middle East and stalled Canada-U.S. trade discussions have kept uncertainty elevated.

The BoC also acknowledged that Canada’s economy posted stronger-than-expected growth, even as it left rates on hold.

Action Forex noted the decision centered on balancing that growth backdrop against the risk to the outlook from trade and geopolitical developments.

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