Bank of Canada holds key interest rate steady [Video]

The Bank of Canada held its benchmark interest rate steady at 2.75 per cent Wednesday as policymakers keep waiting for more clarity on how tariffs will impact the economy.

“Uncertainty remains high,” Bank of Canada governor Tiff Macklem said in prepared remarks after the release of the rate decision.

“At this decision, there was a clear consensus to hold policy unchanged as we gain more information.”

Economists and financial markets widely expected the second consecutive hold.

Macklem noted there had been positive developments on the tariff front since the central bank’s April decision, but trade restrictions remain and new import duties are still being threatened.

Wednesday marked the start of new 50 per cent tariffs on steel and aluminum imports into the United States — double the previous rate.

The Bank of Canada keeps its policy rate elevated when it wants to discourage spending to tamp down inflation and lowers …