Bank of Canada holds interest rate at 1.75%, wary of global slowdown

The Bank of Canada maintained its target overnight interest rate at 1.75 per cent Wednesday, as widely expected by analysts.

Yet Governor Stephen Poloz said Canada has "not been immune" to the effects of a global economic slowdown.

In his opening statement during a meeting with members of the media, Poloz said the "worsening global situation" is the primary issue for the Canadian economy.

"Economic forecasts have been marked down further in most countries, largely as a consequence of the escalation of trade actions and uncertainty around what may be next. Heightened uncertainty about future trade policies is directly reducing business investment, and there is a risk that this will spread to households as well."

In a written statement about the decision and its latest Monetary Policy Report, the central bank said "the outlook for the global economy has weakened further" since its last report in July.