OTTAWA — The Bank of Canada held its benchmark interest rate steady again on Wednesday as new U.S. tariffs and the ongoing war in Iran cloud the central bank’s outlook.
The Bank of Canada’s policy rate remains at 2.25 per cent after a seventh straight hold. The move was widely expected by economists.
Bank of Canada governor Tiff Macklem said Wednesday that the persistence of the Middle East conflict has increased inflationary risks as global energy prices continue to float higher.
A new tariff battle with the United States meanwhile threatens Canada’s burgeoning economic rebound, he said. That renewed uncertainty might lead businesses to delay investment and hiring decisions
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