- Mark Rendell

The Bank of Canada held its policy interest rate steady for the third consecutive time, noting that the Canadian economy has weathered U.S. tariffs better than expected while uncertainty remains pervasive.

As widely anticipated, the central bank’s governing council voted to keep the benchmark interest rate at 2.75 per cent, where it has been since March.

Governor Tiff Macklem said there was a “clear consensus” to hold the rate steady, but suggested the door remained open to additional rate cuts if needed.

“If a weakening economy puts further downward pressure on inflation and the upward price pressures from the trade disruptions are contained, there may be a need for a reduction in the policy interest rate,” he said, according to prepared press conference remarks.