According to reports from Jinshi Data, the Bank of Canada announced on Wednesday that it will maintain the key benchmark interest rate at 2.75%, emphasizing the need to investigate the impact of U.S. trade policies. The central bank stated that if the economy weakens due to tariffs, it may need to cut rates again.
This is the second consecutive time the Bank of Canada has taken a wait-and-see approach, following a nine-month rate-cutting cycle that lowered rates by 225 basis points. The governor pointed out at the press conference that the trade conflict initiated by the U.S. is the biggest headwind facing the Canadian economy and described U.S. trade policies as highly unpredictable. He emphasized that the policy will remain unchanged until more information is obtained.