Bank of Canada holds interest rates, citing ‘clouded’ economic outlook – National

Interest rates in Canada are holding steady for now after the central bank left it unchanged on Wednesday.

The Bank of Canada opted to keep its overnight benchmark at 2.75 per cent, as most economists expected.

This marks the third straight monetary policy meeting where rates have held steady after seven straight rate cuts that began in June of 2024 and ended in March of 2025.

In its report, the central bank cited economic “uncertainty” surrounding the current trade war as one of the main themes which led to this decision.

“The outlook for the Canadian economy remains clouded. The global trade conflict continues to evolve,” the report says.

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“This trade-related uncertainty has two layers. The first layer is around US trade policy, and the second layer of uncertainty is about how households, businesses and governments will react and adapt to tariffs.”

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Business Matters: Bank of Canada widely expected to hold key rate steady amid trade uncertainty

The Bank of Canada also described its ongoing priority to maintain price stability by keeping inflation within its target range of between one to three per cent price year-over-year increases.

“Tariffs have had only a limited effect on inflation to date. Household inflation expectations remain elevated, while businesses’ inflation expectations have moderated,” the report says.

“Some businesses, however, report that the shifts in global trade are imposing new costs on their operations.”

Bank of Canada Governor Tiff Macklem is expected to deliver remarks and answer questions from the media at a press conference beginning at 10:30am Eastern.

More to come.

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