---
title: "Bank of Canada to hold interest rate amid US trade war"
publication: "MediaBias News"
url: "https://mediabias.news/business/bank-of-canada-to-hold-interest-rate-amid-us-trade-war"
api: "https://mediabias.news/api/v1/stories/bank-of-canada-to-hold-interest-rate-amid-us-trade-war"
markdown: "https://mediabias.news/business/bank-of-canada-to-hold-interest-rate-amid-us-trade-war.md"
audio: "https://mediabias.news/api/audio/bank-of-canada-to-hold-interest-rate-amid-us-trade-war"
category: "Business & Economy"
published: "2026-08-31T17:25:16.149Z"
source_reported: "2026-08-31T16:33:50.621Z"
updated: "2026-08-31T17:25:16.149Z"
trust_score: 42
critic_score: 59
hype_score: 20
assessment_type: "coverage-and-source-reporting-analysis"
fact_check_status: "not-performed"
coverage_measured: "2026-08-31T19:15:17.098309+00:00"
---

# Bank of Canada to hold interest rate amid US trade war

*Central bank faces dilemma as tariffs and economic uncertainty loom over rate decision.*

**Scores for the source reporting** (0-100, assessing the original journalism this article was written from, not this write-up): 

- Trust 42 of 100, higher is better. The central claim is attributed to named economists and financial markets, with one full report.
- Craft 59 of 100, higher is better. The report includes expert opinion and economic data, but lacks direct quotes from affected parties.
- Hype 20 of 100, lower is better. The language used is measured and proportionate, with no sensationalism or manufactured urgency.

Scored by MediaBias News; method at https://mediabias.news/methodology.

**The short version**

- The Bank of Canada is expected to keep its benchmark interest rate at 2.25 per cent.
- The U.S. imposed 50 per cent tariffs on Canadian exports on Aug. 22, with Canada planning to retaliate on Sept. 8.
- U.S. President Donald Trump has threatened steeper tariffs on autos and auto parts starting Jan. 1, 2027.
- Canada's economy grew at its fastest pace in more than three years in the second quarter.

The Bank of Canada is anticipated to hold its benchmark interest rate at 2.25 per cent, a level maintained for nearly a year. This decision comes as escalating trade tensions with the United States introduce uncertainty into the economic outlook. The U.S. imposed 50 per cent tariffs on a portion of Canadian exports on August 22, and Canada intends to implement retaliatory tariffs on September 8. Further complicating the situation, U.S. President Donald Trump has indicated potential for increased tariffs on automobiles and auto parts beginning January 1, 2027.

Recent economic data shows Canada's economy expanded at its quickest rate in over three years during the second quarter. However, forecasts suggest this pace may slow in the latter half of the year. The annual inflation rate in Canada was recorded at three per cent as of July. Analysts suggest the central bank will likely maintain the status quo, balancing concerns about inflation against the potential negative impact of trade disputes on economic growth. Some economists believe the bank may signal a bias towards future rate cuts if economic performance weakens.

## Disagreement on inflation impact

While the Bank of Canada's core inflation metrics have remained stable, the full report from CTV News notes that Governor Tiff Macklem had previously warned that rising energy prices could force interest rate hikes to control inflation. Conversely, CTV News also reported Macklem had warned that trade restrictions might lead policymakers to lower the policy rate. Regarding Canada's retaliatory tariffs, CTV News reported that it is unclear whether these costs would be passed on to consumers due to weak demand.

## What the coverage left out

None of the left-rated or centre-rated reports mention the U.S. President's threat of steeper tariffs on autos and auto parts starting January 1, 2027. The full report from CTV News, rated centre, was the only source to include this detail.

## Who covered it

Shares of the 12 covering outlets with a published leaning rating:

- Left: 50% (6)
- Centre: 50% (6)
- Right: 0% (0)

8 of 20 covering outlets carried no usable leaning rating and were excluded from those percentages. Coverage measured 2026-08-31T19:15:17.098309+00:00.

**Coverage watch:** developing. Checked 10 times; 0 checks found a material change. Most recently checked 2026-08-31T19:45:18.231Z.

## How the sides framed it

### Left

- Left-rated reports focused on the Bank of Canada's dilemma regarding the escalating trade war with the United States and its potential impact on interest rates. Digests from The Toronto Star, Rocky Mountain Outlook, The Hamilton Spectator, The Record, and Bowen Island Undercurrent all highlighted the central bank's position of keeping its benchmark rate on hold amidst this uncertainty. Several of these digests noted the rate had been held at 2.25 per cent.

### Centre

- Centre-rated reports highlighted the Bank of Canada's expected decision to hold interest rates steady, with the trade war as a significant factor. Digests from Winnipeg Free Press, The Globe & Mail, City News, and Castanet, along with the full report from CTV News, all pointed to the central bank grappling with renewed trade pressures. CTV News provided specific details on the U.S. tariffs, Canada's planned retaliation, and threats of further U.S. levies on autos, quoting economists on the uncertainty and potential for rate adjustments.

### Right

No separate framing summary.

**Provisional coverage gap:** right. The watch is not closed, so this is not yet a settled blindspot finding.

## Factuality profile of the covering outlets

These are published factuality ratings of the outlets, not a verdict on whether this story or its claims are true.

- high: 6
- unknown: 8
- veryHigh: 6

## Verification scope

This page compares coverage and scores the source reporting. It is not a ClaimReview verdict on whether the underlying event or claim is true.

## Original reporting this was written from

- [La Presse](https://lapresse.ca/affaires/economie/2026-08-31/taux-d-interet/les-tensions-commerciales-devraient-peser-sur-la-decision-de-la-banque-du-canada.php) — Interest Rates on the Bank of Canada's Decision Should Be Affected by Trade Tensions
- [Les Affaires](https://lesaffaires.com/bourse/economie/guerre-commerciale-lincertitude-plane-quant-a-la-decision-de-la-banque-du-canada) — Commercial War: Uncertainty over Bank of Canada Decision
- [Kindersley Social - Local News, Writers, Sports, Events and more](https://kindersleysocial.ca/2026/08/31/bank-of-canada-expected-to-hold-interest-rate-as-trade-war-clouds-economic-outlook) — Bank of Canada Expected to Hold Interest Rate as Trade War Clouds Economic Outlook - Kindersley Social - Local Update, Sports, Events and more
- [大纪元 Epoch Times](https://epochtimes.com/b5/26/8/31/n14840175.htm) — Canada Is Expected to Keep Interest Rates Unchanged This Week as Trade War with the United States Escalates.
- [BIV News](https://biv.com/news/bank-of-canada-set-to-grapple-with-renewed-trade-war-pressures-in-rate-decision-12723711) — Bank of Canada set to grapple with renewed trade war pressures in rate decision
- [Western Investor](https://westerninvestor.com/economy-law-politics/bank-of-canada-set-to-grapple-with-renewed-trade-war-pressures-in-rate-decision-12723711) — Bank of Canada set to grapple with renewed trade war pressures in rate decision
- [Saaz o Awaz - Listen Online](https://eawaz.com/local-news/bank-of-canada-set-to-renewed-trade-war) — Bank of Canada set to grapple with renewed trade war 26
- [Castanet](https://castanet.net/news/Canada/629721/Bank-of-Canada-set-to-grapple-with-renewed-trade-war-pressures-in-rate-decision) — Bank of Canada set to grapple with renewed trade war pressures in rate decision
- [CTV News](https://ctvnews.ca/canada/article/bank-of-canada-set-to-grapple-with-renewed-trade-war-pressures-in-rate-decision) — Bank of Canada set to grapple with renewed trade war pressures in rate decision
- [Bitcoin World](https://bitcoinworld.co.in/bank-of-canada-hold-canadian-dollar-bbh) — Canadian Dollar Steady As Bank Of Canada Holds Rates; BBH Sees Support
- [The Toronto Star](https://thestar.com/business/bank-of-canada-set-to-grapple-with-renewed-trade-war-pressures-in-rate-decision/article_c8fadc62-69fb-5dce-9aa7-e0277d5a0da2.html) — Bank of Canada set to grapple with renewed trade war pressures in rate decision
- [Rocky Mountain Outlook](https://rmoutlook.com/national-business/bank-of-canada-set-to-grapple-with-renewed-trade-war-pressures-in-rate-decision-12723705) — Bank of Canada set to grapple with renewed trade war pressures in rate decision
- [Airdrie City View](https://airdriecityview.com/national-business/bank-of-canada-set-to-grapple-with-renewed-trade-war-pressures-in-rate-decision-12723705) — Bank of Canada set to grapple with renewed trade war pressures in rate decision
- [City News](https://toronto.citynews.ca/2026/08/31/bank-of-canada-set-to-grapple-with-renewed-trade-war-pressures-in-rate-decision) — Bank of Canada set to grapple with renewed trade war pressures in rate decision
- [Bowen Island Undercurrent](https://bowenislandundercurrent.com/the-mix/bank-of-canada-set-to-grapple-with-renewed-trade-war-pressures-in-rate-decision-12723708) — Bank of Canada set to grapple with renewed trade war pressures in rate decision
- [The Hamilton Spectator](https://thespec.com/business/bank-of-canada-set-to-grapple-with-renewed-trade-war-pressures-in-rate-decision/article_80b5a703-1837-558c-8527-03e427a0221f.html) — Bank of Canada set to grapple with renewed trade war pressures in rate decision
- [The Record](https://therecord.com/business/bank-of-canada-set-to-grapple-with-renewed-trade-war-pressures-in-rate-decision/article_3949b396-5eaf-5909-bbc4-0ff6feca6a62.html) — Bank of Canada set to grapple with renewed trade war pressures in rate decision
- [Winnipeg Free Press](https://winnipegfreepress.com/business/2026/08/31/bank-of-canada-set-to-grapple-with-renewed-trade-war-pressures-in-rate-decision) — Bank of Canada set to grapple with renewed trade war pressures in rate decision
- [The Globe & Mail](https://theglobeandmail.com/business/article-bank-of-canada-expected-to-hold-rates-steady-as-trade-war-escalates) — Bank of Canada expected to hold rates steady as trade war escalates
- [BizToc](https://biztoc.com/x/c3964cad49469ef8) — Bank of Canada expected to hold rates steady as trade war escalates

## Questions

**What is the Bank of Canada expected to do with its interest rate?**

The Bank of Canada is widely expected to keep its benchmark interest rate unchanged at 2.25 per cent. This rate has been held steady for nearly a year, and analysts anticipate the central bank will maintain this position at its upcoming decision.

**What are the main trade issues affecting Canada?**

The U.S. imposed 50 per cent tariffs on a portion of Canadian exports on August 22, and Canada plans to retaliate with its own tariffs on September 8. U.S. President Donald Trump has also threatened steeper tariffs on autos and auto parts starting in January 2027.

**How has Canada's economy performed recently?**

Canada's economy experienced its fastest growth in more than three years during the second quarter. However, forecasts suggest this growth rate may slow down in the second half of the year, partly due to trade tensions.

---

MediaBias News — https://mediabias.news. Reproduced from https://mediabias.news/business/bank-of-canada-to-hold-interest-rate-amid-us-trade-war. Please cite as: MediaBias News, "Bank of Canada to hold interest rate amid US trade war", https://mediabias.news/business/bank-of-canada-to-hold-interest-rate-amid-us-trade-war