The Bank of Canada maintains the interest rate at 2.75%, halting seven consecutive cuts

After seven consecutive rate cuts, the Bank of Canada maintained its key interest rate at 2.75% on Wednesday, stating that officials need time to determine the final extent and severity of tariffs imposed by the United States on Canada and other countries, as well as their impact on inflation. The Governor of the Bank of Canada, Macklem stated that policy makers are struggling to digest the "dramatic" shift in global trade policies triggered by President Trump. This shift has disrupted financial markets, forced businesses to cancel or reduce spending and hiring plans, and led to increased inflation expectations among businesses and households. "I still don't know what tariffs will be imposed, whether they will be lowered or raised, nor how long all this will last. Interest rate policy will ensure good control over inflation and support economic growth during this unnecessary trade war faced by Canada."