The Bank of Canada on Wednesday held its key benchmark rate at 2.75%, citing the need to probe the effects of U.S. trade policy, but said another cut might be necessary if the economy weakened in the face of tariffs.

The second consecutive hold was in line with market expectations. Officials say potential rate cuts are ahead if tariffs weaken the economy

The Bank of Canada held its benchmark interest rate steady at 2.75 per cent Wednesday as policymakers keep waiting for more clarity on how tariffs will impact the economy.