The Bank of Canada held its key policy rate at 2.75% for the third time in a row on Wednesday, as expected, and said the risk of a severe and escalating global trade war had diminished.

The Bank of Canada left its main interest rate unchanged at 2.75%, while signaling another rate reduction might be necessary should conditions weaken further and inflation moderates.

The Bank of Canada held its interest rate at 2.75 per cent for the third straight time on Wednesday, but left the door open for further rate relief if inflation is contained. “We will continue to assess the timing and strength of both the downward pressures on inflation from a weaker economy and the upward pressures on inflation from higher costs related to tariffs and the reconfiguration of trade,