Bank of Canada Maintains Interest Rate Amid Economic Uncertainty
The Bank of Canada has decided to keep its key overnight rate steady at 2.25%, marking the fifth consecutive time it has done so. This decision comes amidst weak economic activity and ongoing uncertainties, including U.S. trade policy and elevated oil prices. The Canadian dollar saw a slight increase against the U.S. dollar following the announcement but later retracted. Investors had been anticipating a potential rate hike, but the current economic data in Canada, which has not been robust, allows the Bank of Canada to adopt a wait-and-see approach. Recent GDP data indicated that Canada's economy entered a technical recession in the first quarter. The country is currently grappling with higher energy prices, increased mortgage rates, and trade uncertainties. President Trump has also indicated the possibility of not renewing the U.S. free trade deal with Canada and Mexico, adding to the economic uncertainties. 
