The Bank of Canada is expected to keep, and then does keep, its key policy interest rate unchanged at 2.25%, marking a fifth consecutive hold. Multiple outlets report that the decision matches market and forecaster expectations. The bank cites a mixed economic outlook, with the Canadian economy described as weak or stagnating and growth risks viewed as tilted to the downside. At the same time, inflation risks persist, including concerns related to global oil price pressures that can raise inflation.
Bank of Canada Governor Tiff Macklem is quoted as emphasizing the need for policymakers to remain flexible (“nimble”) and to respond to evolving information. The central bank reiterates its commitment to keeping inflation low and stable over time. The official stance, as summarized across sources, is that with both upside risks to inflation and downside risks to growth, the bank chooses to wait rather than adjust the rate immediately. No change to the policy rate is announced in connection with this decision.
