Bank of Canada maintains policy rate for seventh consecutive decision

“The upside risks to inflation have increased,” said Macklem. “The durability of that we’ve seen in the rebound in economic activity is more uncertain with new U.S. trade actions.”

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The Bank of Canada announced that its benchmark interest rate will remain at 2.25 per cent on Wednesday, marking the central bank’s seventh consecutive hold. The decision was widely expected by economists as uncertainty around the escalating Canada-U.S. trade war and instability in the Middle East continues to persist.

However, Bank of Canada Governor Tiff Macklem told reporters, “We don’t have a new forecast this time,” but said that would be provided “next time.”