Bank of Canada holds interest rate steady again amid trade war – National [Video]

Interest rates in Canada are staying put for now, after the Bank of Canada held its monetary policy steady on Wednesday.

The benchmark, or overnight, lending rate stands at 2.75 per cent, and represents the floor level of interest off of which banks can base their “prime” rate.

This is the second straight monetary policy meeting where the central bank opted to leave the benchmark rate unchanged, citing the uncertain economic outlook in a statement:

“With uncertainty about US tariffs still high…Governing Council decided to hold the policy rate as we gain more information on US trade policy and its impacts.”

Following the announcement, Governor Tiff Macklem spoke about how he and other members of the council came to the decision.

“The Bank’s preferred measures of core inflation, as well as other measures of underlying inflation, moved up in April,” said Macklem.

“There is some unusual volatility in inflation, but these measures suggest underlying inflation could be firmer than we …