By Canadian Press

Bank of Canada holds steady on rate decision amid trade war

Apr 16, 2025 | 1:01 AM

OTTAWA — The Bank of Canada has decided to keep its current interest rate in place amid looming trade war impacts to the economy.

The central bank cut its policy rate by a quarter point to 2.75 per cent at its most recent decision in March.

Market bets were nearly evenly split between a rate hold and a cut heading into Wednesday’s meeting.

The decision comes a day after Statistics Canada reported the annual rate of inflation cooled to 2.3 per cent last month.

The rate decision also lands in the middle of Canada’s tariff war with the United States, which many economists say complicates the central bank’s decision.

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The Bank of Canada warns it can’t tackle both the economic hit from a tariff dispute with the United States and higher prices from the trade war at the same time.

This report by The Canadian Press was first published April 16, 2025.

The Canadian Press