The Bank of Canada has decided to keep its overnight interest rate unchanged at 2.75% as it evaluates the impact of U.S. import tariffs on the Canadian economy.
The decision to maintain the current interest rates is influenced by the uncertainty caused by U.S. trade policies and the upcoming national elections in Canada.
A decrease in Canada's inflation rate and the disruptive nature of the U.S. tariff campaign were also factors contributing to the decision.
The central bank will closely monitor the effect of tariffs on Canadian exports before making future decisions on interest rates.