Ottawa, April 30 -- The Bank of Canada held its benchmark overnight interest rate at 2.25% on Wednesday, citing global uncertainty driven by the Middle East conflict and evolving US trade policy.

The central bank said heightened geopolitical tensions, particularly the Iran war, have pushed up energy prices and disrupted transportation, adding pressure to global inflation while dampening growth prospects in oil-importing economies.

Consumer and government spending continue to support activity, though exports and business investment remain constrained by tariffs and trade uncertainty.

Inflation rose to 2.4% in March, largely due to higher gasoline prices, and is expected to climb further to around 3% in April. However, the bank said unde...