The Bank of Canada on Wednesday held its key policy rate at 2.75%, its first pause after seven consecutive cuts, and said it would be ready to act decisively if needed to keep inflation under control.

The Bank of Canada paused its interest rate cutting cycle and reiterated that policymakers “will proceed carefully” as they wait to see how US President Donald Trump’s trade policy takes shape.

The Bank of Canada on Wednesday kept its key policy rate unchanged at 2.75%, marking its first pause after seven straight reductions. According to a statement released by the bank on Wednesday, this decision was made amid heightened economic uncertainty resulting from major shifts in US trade policy and concerns about inflation.

Canadians head to the polls on April 28 in a general election that could see a tight race between Prime Minister Mark Carney's Liberals and Pierre Poilievre's Conservatives. With 343 seats in the House of Commons up for grabs,