India, June 4 -- After opening slightly up and advancing a bit, Canadian stocks retreated Wednesday morning, with investors digesting the Bank of Canada's rate decision, and assessing the prospects of trade negotiations with the U.S. in the wake of U.S. President Donald Trump doubling tariffs on steel and aluminum.
As widely expected, the Bank of Canada said it decided to maintain its target for the overnight rate at 2.75%, with the Bank Rate at 3% and the deposit rate at 2.7%.
"With uncertainty about US tariffs still high, the Canadian economy softer but not sharply weaker, and some unexpected firmness in recent inflation data, Governing Council decided to hold the policy rate as we gain more information on US trade policy and its impact...