The Bank of Canada is keeping its key interest rate on hold at 2.75 per cent.
Economists had expected that decision as the central bank needs more clarity on how the Canada-U-S trade dispute will impact the economy.
It says there was consensus among its governing council for a second consecutive rate pause after inflation data showed “unexpected firmness” in April and the economy topped expectations in the first quarter of the year.
Still, the Bank of Canada is expecting more weakness in the coming months.
