Ottawa, July 15 (Post Bureau): The Bank of Canada has announced to maintain its main policy interest rate at 2.25 percent. The central bank says that despite the sluggish economic growth over the past year and a half, the economy is expected to improve in the coming period. According to the bank’s latest monetary policy report, there was almost no growth in Canada’s GDP from the first quarter of 2025 to the first quarter of 2026. The main reason for this was the decrease in government spending, the decline in vehicle production and the decline in investment in the oil and gas sector. The report says that the housing sector was also hit by high prices, economic uncertainty and a slowdown in population growth. Consumer spending remained strong and there were signs of improvement in exports and residential investment in the second quarter. The bank warned that US tariffs, Canada-Uncertainty about US trade relations and ongoing conflicts in the Middle East could affect inflation and economic growth in the future. The Bank of Canada estimates that the country’s economic growth rate could remain just over one per cent during the first half of 2026.