Bank of Canada holds interest rate at 2.75% amid tariff uncertainty

The Bank of Canada has held its key interest rate at 2.75 per cent amid the ongoing unpredictability of U.S. President Donald Trump’s tariffs.

This decision reflects concerns that the erratic tariff announcements have dampened economic growth prospects and pushed inflation expectations higher.

A series of tariff announcements has taken a toll on the Canadian economy by undermining consumer and business confidence.

Global economic growth was solid at the end of last year, but the ongoing tariff announcements have darkened the outlook.

Inflation is easing toward central bank targets, yet persistent tariff uncertainty remains a key risk.

The next scheduled date for announcing the overnight target rate is June 4.

READ MORE: Canada’s inflation rate drops to 2.3 per cent, says StatCan