OTTAWA — The Bank of Canada finds itself in a familiar dilemma this week as the escalating trade war with the United States casts an uncertain light over Wednesday’s interest rate decision.
The central bank has kept its benchmark rate on hold at 2.25 per cent for nearly a year now.
Before trade talks between Canada and the United States fell apart earlier this month, economists and financial markets alike had widely expected the Bank of Canada would stick to the sidelines for the rest of the year and into 2027.
Recent tariff volleys have changed the economic context.
On Aug. 22, the U.S. imposed 50 per cent tariffs
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