The Bank of Canada is holding its key interest rate at 2.75 per cent.

Bank of Canada Governor Tiff Macklem cites the ongoing trade dispute between Canada and the U.S. and the risks posed by global economic uncertainty as the reason for holding the line.

Macklem says despite that, Canada’s economy is showing resilience in the face of U.S. tariffs.

“While U.S. tariffs are disrupting trade, so far, Canada’s economy is showing some resilience” says Macklem. “Inflation is close to our 2 per cent target, but we see evidence of underlying inflation pressures.”