OTTAWA, July 31 (V7N) – The Bank of Canada has kept its key policy rate steady at 2.75% for the third consecutive time, citing a reduced risk of a severe and escalating global trade war. Despite ongoing tariffs on several sectors, the central bank noted the overall economic impact has been limited, with job growth remaining strong and inflation close to the 2% target.
Governor Tiff Macklem said underlying inflation pressures persist but are being moderated by factors such as a stronger Canadian dollar and slower wage growth. Due to uncertainty around U.S. trade policy, the bank declined to release detailed economic forecasts this quarter and instead outlined multiple scenarios to guide future decisions.
The central bank indicated it could consider cutting rates if the economy weakens further while inflation pressures remain controlled. The move reflects cautious optimism amid ongoing trade tensions and economic challenges.
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