Bank of Canada 'in a bind' as it holds interest rates again

The Bank of Canada maintained its benchmark rate at 2.75 per cent on Wednesday — the second straight announcement hold — but several economists think more cuts are inevitable as the uncertainty around tariffs weakens the economy.

Policymakers justified the widely expected hold on several fronts, citing higher-than-expected core inflation , a volatile tariff outlook and an economy that has so far held up better than expected.

Here’s where economists think the Bank of Canada is headed with interest rates .

‘In a bind’: TD

Recent data put the Bank of Canada “in a bind,” Leslie Preston, managing director and senior economist at Toronto-Dominion Economics, said.

Following the central bank’s rate hold in April, the Canadian economy has lost private-sector jobs, domestic demand ha