Canada

• The Bank of Canada holds rates steady at 2.25% as expected
• Macklem says economy was proving more resilient to tariffs
• Macklem reiterates policy rate at about the right level

The Bank of Canada held its key policy rate steady at 2.25% on Wednesday as widely expected, and Governor Tiff Macklem said the economy was proving resilient overall to the effect of U.S. trade measures.

Despite tariffs between 25% and 50% on some critical sectors such as cars, lumber, aluminum and steel, Canada's economy has shown signs of strength.

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Third quarter annualized GDP grew by 2.6%, much more than expected, while employment data showed the economy added 181,000 new jobs between September and November.

"It's been a difficult year for Canadians and Canadian businesses. But as the year is closing, it's looking better than it looked in the spring, in the summer," Macklem said during a press conference after the rates decision.

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Uncertainty remains high and if the outlook changes, the bank is ready to respond, Macklem said, reiterating comments he made when the bank cut rates in October to their current level.

"Governing Council sees the current policy rate at about the right level to keep inflation close to 2% while helping the economy," said Macklem.

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