The Bank of Canada announced today its decision to keep the key interest rate at 2.75%, in a move that was expected amid rising trade tensions between Canada and the United States and the pressures they impose on the Canadian economic landscape.

The bank confirmed in its statement that its decision is based on a comprehensive assessment of the current economic conditions, noting that the ongoing trade war and reciprocal tariffs with Washington could negatively affect growth and investment rates.

The statement added that the bank is closely monitoring developments in the global and domestic economy, indicating that the persistence of inflation within the target range and the stability of the labor market support the decision to refrain from adjusting the interest rate at this time.

This decision comes at a sensitive time as trade relations between Canada and the United States are experiencing increasing tensions following the imposition of reciprocal tariffs, which raises uncertainty in the markets and presents challenges for monetary policymakers in Ottawa.