Canada Central Bank Holds Interest Rate Steady Amid Tariffs Chaos

Canada's central bank has held interest rates steady, though it painted a dire economic picture amid uncertainty over US tariffs (Credit: AFP)

The Bank of Canada on Wednesday held its key lending rate at 2.75 percent, pausing a stream of recent cuts due to shifting US trade policy and tariffs.

"The major shift in direction of US trade policy and the unpredictability of tariffs have increased uncertainty, diminished prospects for economic growth, and raised inflation expectations," the central bank said in a statement.