Bank of Canada says next rate move 'unusually difficult' to predict amid trade and geopolitical tensions
The Bank of Canada says heightened geopolitical tensions, U.S. trade policy uncertainty and the review of CUSMA have made it unusually difficult to assess economic risks, as it held its key interest rate at 2.25 per cent on Jan. 28. In newly released deliberations, the central bank said the range of possible outcomes has widened, requiring policymakers to remain flexible and ready to respond if conditions shift. Despite the uncertainty, the bank maintained its outlook for modest economic growth and stable inflation, while warning that food and rent prices remain key concerns for Canadians.
