OTTAWA—The Bank of Canada has maintained its key interest rate at 2.75 percent for the second time in a row, saying uncertainty around tariffs remains high but that Canada’s economic growth was slightly higher than expected in the first quarter of the year.
“Uncertainty remains high, the Canadian economy is softer but not sharply weaker, and we’ve seen some firmness in recent inflation data,” said Bank of Canada Governor Tiff Macklem on June 4. “Against this backdrop, we decided to hold the policy rate unchanged as we continue to gain more information on U.S. trade policy.”
