US EditionBank of Canada holds key interest rate at 2.25%
The Bank of Canada paused rate cuts after a 2.6% GDP gain and 181,000 job increase, maintaining inflation near its 2% target amid trade uncertainty.
- On Wednesday, the Bank of Canada held its key policy interest rate at 2.25 per cent, announcing the decision at 9:45 a.m. eastern time before a press conference with Tiff Macklem.
- Bank officials cited recent GDP, CPI and Labour Turnover survey data showing unemployment ticking down, and the governing council sees the current rate as about right to keep inflation near two per cent, Macklem said.
- Most economists expected a hold at 2.25 per cent after somewhat positive reports, and markets priced in no change today, with Derek Holt saying no hike is expected until summer into fall.
- Keeping rates unchanged leaves borrowing costs at current levels, as governing members at the Bank of Canada cut interest rates four times this year including September and October.
- Amid high uncertainty into 2026, the Bank of Canada said it is prepared to respond if the outlook changes, and at least one economist expects a hike in the second half of 2026.
54 Articles
54 Articles
Toronto (Canada), Dec 10 (EFE).- The Bank of Canada announced this Wednesday that it will keep interest rates unchanged at 2.25%, in its last decision of 2025, in the face of the improvement of the country’s economic situation despite the tariffs imposed by the United States, its main trading partner. The central bank noted in a statement that the Canadian economy exceeded expectations with the unexpected growth of 2.6% in the third quarter and …
After a jump of half a percentage point in September, inflation was close to the target, falling to 2.2% on an annual basis in October.
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Bank of Canada maintains key lending rate
The Bank of Canada has opted to keep its key lending rate at 2.25 per cent.
Bank of Canada Keeps Policy Rate at 2.25 Percent, Says It’s at the ‘Right Level’ for Low Inflation
The Bank of Canada announced it is maintaining its policy rate at 2.25 percent, noting Canada’s economy has shown resilience in the face of U.S. tariffs. “Nevertheless, uncertainty remains high and the range of possible outcomes is wider than usual. If the outlook changes, we are prepared to respond,” Bank of Canada Governor Tiff Macklem said on Dec. 10. Macklem said if inflation and economic growth in Canada remain in line with the Bank’s Octob…
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