Bank of Canada holds interest rate as it assesses risks amid tariff uncertaintyYour Title
The Bank of Canada held its interest rate at 2.75 per cent on Wednesday, citing uncertainty brought on by United States trade policy for its first pause after a string of seven consecutive cuts that began in June 2024.
“At this meeting, we decided to hold our policy rate unchanged as we gain more information about both the path forward for U.S. tariffs and their impacts,” said Bank of Canada governor Tiff Macklem, during prepared remarks in Ottawa. “Faced with pervasive uncertainty, Governing Council will proceed carefully, with particular attention to the risks.”
U.S. President Donald Trump’s trade actions have caused global market volatility and increased uncertainty for Canadian businesses and households. Tariffs remain in place on Canadian steel and aluminum, motor vehicles and goods not in compliance with the Canada-United-States-Mexico-Agreement (CUSMA). On April 2, Trump introduced global reciprocal tariffs on countries worldwide, before announcing a 90-day pause on April 9, while keeping a 10-per-cent baseline tariff on most countries.
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