The Bank of Canada is narrowly expected to hold its key policy rate at 2.75% on Wednesday as U.S. President Donald Trump's tariffs slowly trickle through the economy, hurting businesses and consumers.

With uncertainty over US trade policy, the Bank of Canada offered two outlook scenarios in its April Monetary Policy Report. "There is a range of scenarios for how US trade policy could unfold," the central bank said on Wednesday.

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.