Bank of Canada Governor Macklem warns US trade uncertainty is freezing business investment, with exports at 1930s lows and unemployment at 7.1%.

The central bank is widely expected to deliver a fifth consecutive hold to its benchmark rate, which stands at 2.25 per cent.

Bank of Canada holds its policy rate at 2.25% as Governor Tiff Macklem downplays recession fears despite a 1.6% GDP contraction in Q2 2026.