OTTAWA—Canada’s central bank held its benchmark interest rate steady Wednesday as it warned that rising geopolitical and trade conflicts risk undermining global growth.
In keeping its main interest rate at 1.25%, the Bank of Canada said it anticipates inflation will move higher this year before returning close to its 2% target in 2019. Canada’s export and investment levels, while expected to strengthen, continue to be held back by competitiveness challenges and trade uncertainty, the bank said.
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