The Bank of Canada (BoC) has decided to keep its interest rate steady at 2.75%, marking a pause after seven consecutive rate cuts. This decision comes as Canada's inflation rate has risen above the central bank’s target.

However, analysts expect the BoC to halt further rate cuts in April due to rising global economic uncertainty, much of which stems from the U.S.'s tariff increases.

Additionally, a recent survey by the central bank reveals that both businesses and consumers in Canada are bracing for a higher risk of recession next year. This is largely due to the tariffs and retaliatory measures implemented by U.S. President Donald Trump. As a result, many companies have put investment and hiring plans on hold, with current employment projections still below pre-COVID-19 levels.

Source: Fxstreet