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