The Bank of Canada held its benchmark interest rate steady at 2.75% on Wednesday as policymakers await further clarity on the impact of tariffs on the economy.
"The level of uncertainty remains elevated," Bank of Canada Governor Tiff Macklem said in remarks following the rate decision. "In this decision, there was a clear consensus to keep policy unchanged as more information becomes available."
Economists and financial markets had widely expected the rate to be held for a second consecutive time.
Macklem noted that there have been positive developments on the tariff front since the central bank's April decision, but trade restrictions remain, and threats of new import tariffs remain.
Wednesday saw the implementation of new 50% tariffs on steel and aluminum imports to the United States—double the previous rate.
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