Bank of Canada holds key interest rate steady at 2.75% amid U.S. trade uncertainty

The Bank of Canada held its benchmark interest rate steady at 2.75 per cent on Wednesday, hitting pause on its easing campaign after seven consecutive cuts.

The bank held off publishing a central forecast amid uncertainty about U.S. trade policy, but outlined two possible scenarios. The downside scenario sees Canada entering a recession this year and inflation rising above 3 per cent.