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Bank of Canada holds key interest rate at 2.25 per cent
The Bank of Canada paused at 2.25% citing a soft economy and inflation risks from Middle East conflict, with job losses exceeding 100,000 early 2026, Statistics Canada said.
- Holding the overnight rate at 2.25 per cent, the Bank of Canada announced on March 18, 2026, with the Bank Rate at 2.5 per cent and the deposit rate at 2.20 per cent.
- Amid a slowing domestic economy and higher energy costs, Canada's GDP contracted 0.6 per cent last year while Statistics Canada reported the labour market shed over 100,000 jobs in early 2026.
- Governor Tiff Macklem said, 'As the outlook evolves, we stand ready to respond as needed,' emphasizing the Bank's focus on inflation measures close to 2 per cent.
- Commercial banks and other lenders set loan rates based on the Bank of Canada's benchmark, so the hold directly shapes borrowing costs for Canadians while the Bank will update forecasts on April 29, 2026.
- Governor Tiff Macklem described the situation as a 'dilemma', with U.S. trade uncertainty softening growth and the Iran war pushing global oil prices up, risking inflation and economic weakness.
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Coverage Details
Total News Sources37
Leaning Left20Leaning Right1Center7Last UpdatedBias Distribution71% Left
Bias Distribution
- 71% of the sources lean Left
71% Left
L 71%
C 25%
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