Bank of Canada holds key interest rate at 2.25%, flags US trade uncertainty and Iran war risks

The Bank of Canada maintained its key interest rate at 2.25%, with Governor Macklem downplaying recession fears. However, the BoC flagged significant global uncertainties, including US trade instability and risks related to the Iran war. These factors may cause volatility in Canadian markets, impacting inflation, exports, and investment strategies. While the steady rate signals cautious optimism, modest economic growth and persistent global trade tensions continue to pose ongoing risks to the national economy.