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Bank of Canada Holds Interest Rate, Underlines ‘Growing’ Trade Uncertainty

(Andy Blatchford – Canadian Press)

A cautious Bank of Canada kept its key interest rate on hold Wednesday as it bought itself more time to monitor mounting trade-related uncertainties out of the United States.

In sticking with its 1.25 per cent overnight target, the central bank blamed recent trade policy changes for the thickening clouds around the economic outlook.

Last week, U.S. President Donald Trump threatened to impose heavy tariffs on Canadian steel and aluminum. The announcement added to an already murky context for Canada that includes concerns over NAFTA’s renegotiation and fears over competitiveness, following corporate tax cuts south of the border. Click here to read more.

Related: Bank of Canada Press Release