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Bank of Canada holds key interest rate at 2.25%
The Bank of Canada cites trade-related uncertainty and subdued business sentiment while forecasting modest growth near 1.1% in 2026 and inflation near 2%, Governor Macklem said.
- On Wednesday, the Bank of Canada announced it will hold its key interest rate at 2.25 per cent and released updated forecasts, with a 10:30 a.m. news conference carried live by CBC News.
- Amid trade uncertainty, the scheduled Canada-U.S.-Mexico trade agreement review later this year and modest growth forecasts have influenced the bank's decision to hold rates, the bank said.
- Data show the economy stalled in the final quarter of 2025, with swings in export volumes driving GDP volatility, while annual inflation holds around two per cent, the bank said.
- With heightened uncertainty, the Bank of Canada's Governing Council views the policy rate as `appropriate` but says the timing or direction of the next change is difficult to predict amid unusually high geopolitical risks and the Canada-U.S.-Mexico agreement review.
- Globally, the Bank of Canada sees global GDP growth at a little over three per cent for the coming years, and the next interest rate decision is set for March 18 amid concerns over net exports and population growth.
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26 Articles
Coverage Details
Total News Sources26
Leaning Left9Leaning Right2Center3Last UpdatedBias Distribution64% Left
Bias Distribution
- 64% of the sources lean Left
64% Left
L 64%
C 22%
14%
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