Canada keeps policy rate at 2.25%

Bank of Canada has decided to maintain policy rate at 2.25%. The overnight rate will be 2.25%, Bank Rate at 2.5% and the deposit rate at 2.20%.

Canada admits that US tariffs and the unpredictability of future trade arrangements are disrupting the Canadian economy. Growth in Canada is expected to remain modest, while inflation stays close to 2%.

The Canadian economy continues to evolve as expected. Average quarterly growth was subdued in 2025, weighed down by US tariffs and slowing population growth. CPI inflation remains near the 2% target.

The outlook for the Canadian economy is evolving largely as anticipated. Economic growth is expected to average around 1¼% over the projection horizon, and inflation remains near 2%.