Bank of Canada holds key interest rate at 2.25% amid ongoing U.S. trade tensions

The Bank of Canada is holding steady, leaving the key interest rate at 2.25 per cent, even as the economy weathers ongoing trade tensions with the United States.

A sign economists say proves Canada’s finances are heartier than they may seem.

This comes following unexpected GDP growth and a steep drop in the nations unemployment rate back in November.

This hold was widely expected by most but still hovers above the banks targeted rate of 2 per cent.

Whether the economy came out faring better than expected or not, Canadians are still feeling the squeeze, a notion, even Tiff Macklem, the banks Governor acknowledged Wednesday.

At this point it really is a wait and see situation where anything could change, whether it’s the Canada-United-States-Mexico agreement or we’re hit with more tariffs, the Bank of Canada says it’s ready adapt.