Bank of Canada Holds Key Interest Rate at 2.25%

Summary

The Bank of Canada held its policy interest rate at 2.25% for a fifth straight meeting, citing a soft economy, higher energy prices from the Middle East conflict, and trade policy uncertainty from proposed US tariffs. Governor Tiff Macklem stressed the bank’s commitment to keeping inflation low and stable over time.

• Bank of Canada maintains policy rate at 2.25%
• Economic softness persists in Canada
• Higher energy prices and supply chain disruptions push up global inflation
• US tariff proposals elevate trade policy uncertainty
• Central bank focused on preventing energy shock from becoming persistent inflation