Bank of Canada holds key interest rate steady at 2.25% in soft economy

Описание: he Bank of Canada held its benchmark interest rate steady Wednesday and forecasts a gradual economic recovery from the U.S. tariff shock.

The policy rate remains at 2.25 per cent after the central bank’s first decision of the year.

Economists had widely expected the hold.


Bank of Canada governor Tiff Macklem said in prepared remarks that the economy has evolved broadly in line with the central bank’s expectations since hitting pause on its interest rate easing cycle in December.

But he also warned that uncertainty remains “unusually high,” particularly around geopolitical risks and the upcoming review of the Canada-U.S.-Mexico agreement.

Macklem said it’s “too early to tell how well the Canadian economy will adjust to current tariffs and ongoing uncertainty.”

He said the central bank’s governing council sees the policy rate as “appropriate” based on the central bank’s outlook, but the “timing or direction of the next change in the policy rate” is difficult to predict.

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