Bank of Canada holds key interest rate amid trade uncertainty, Iran war

The Bank of Canada has held its key interest rate at 2.25 per cent for the seventh straight decision amid tension regarding new U.S. tariffs on Canada and the ongoing conflict in the Middle East.

The move to hold the interest rate was widely expected by economists.

Bank of Canada Governor Tiff Macklem says that the ongoing war in Iran and the Middle East has led to increased risks with regards to inflation.

He adds that the renewed tariff battle and uncertainty may lead businesses to put off investing or hiring in Canada until the future is clearer.

With files from The Canadian Press.

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