Bank of Canada holds key interest rate at 2.25%, saying economy has proved ‘resilient’

The Bank of Canada held its key interest rate at 2.25 per cent on Wednesday, a move that was widely expected after an encouraging round of third-quarter data showed the Canadian economy has withstood some trade war-induced turmoil.

The current rate is at “about the right level” to give the economy a boost through a “structural transition,” while also keeping inflation close to its two per cent target rate, central bank governor Tiff Macklem said in his opening remarks.

“Nevertheless, uncertainty remains high and the range of possible outcomes is wider than usual. If the outlook changes, we are prepared to respond,” he said.