Bank of Canada Holds Rates Steady: Expert Weighs in on US Trade Uncertainty

Bank of Canada Holds Interest Rates Steady Amidst US Trade Uncertainty The Bank of Canada announced today that it will maintain its key interest rate at 2.75 percent. This decision comes amidst considerable uncertainty surrounding US trade policies and their potential impact on the Canadian economy. David MacDonald, senior economist at the Canadian Centre for Policy Alternatives, offered insight into the Bank's decision. "The big uncertainty around American trade policy continues," MacDonald stated. He explained that the Bank of Canada had outlined two potential scenarios for the second quarter, ranging from a significant economic slowdown to a negligible effect. MacDonald emphasized the need to await further data before drawing definitive conclusions, suggesting that the July decision will provide a clearer picture of the economic outlook. The Bank's decision to hold steady reflects a cautious approach given the current global economic climate. The impact of US trade policies remains a key factor influencing the Bank's future decisions. The upcoming July announcement will be closely watched by economists and the public alike.