Bank of Canada holds interest rate, warns of ‘significant uncertainties’
OTTAWA — The Bank of Canada held its benchmark interest rate steady on Wednesday and warned that it is keeping a watchful eye on “significant uncertainties” weighing on the outlook for the economy.
The scheduled rate announcement arrived as the central bank tries to assess the direction of U.S. economic policy under President Donald Trump — and the potential fallout from any policy changes he makes.
The bank has said some U.S. proposals, which include a border tax and protectionist policies, would have “material consequences” for Canadian investment and exports.
In an unusually short statement, the Bank of Canada used strong language when referring to uncertainties, as it did in the news release that accompanied its last rate announcement on Jan. 18.