Bank of Canada Holds Key Rate Steady

People with variable rate mortgages will have to wait a little longer to experience another drop in their monthly payment as  Bank of Canada held its interest rate at 2.75 per cent on Wednesday, citing resilience in the economy despite the ongoing global trade war brought on by the U.S.

The Bank of Canada lowers its policy rate when it wants to stimulate the economy but keeps borrowing costs elevated when it's worried inflation will rise.

BOC Governor Macklem said that deals made between the U.S. and other world powers in recent weeks have reduced the risk of a "severe and escalating" global trade war, and the impact so far has been less severe than originally feared. 

Despite resilience, Macklem said the door is still open to lowering rates in the future if necessary.

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