Bank of Canada extends rate hold as trade war intensifies
Macklem says surprise uptick in growth is fragile thanks to new US tariffs and high petrol prices
The Bank of Canada held rates at its monetary policy meeting on September 2 and signalled a willingness to hike in the future.
Tiff Macklem, the bank’s governor, cited stronger GDP growth but stubborn inflation – mostly caused by high energy prices – as the key reasons for keeping the policy interest rate at 2.25%. The Bank of Canada last cut rates in September 2025, after the first set of US tariffs against the country came into effect.
The bank’s monetary policy statement omitted the wording it
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