Bank of Canada holds policy rate at 2.25 percent amid tariff uncertainty

The Bank of Canada held its policy rate at 2.25 percent while forecasting modest growth. Inflation is expected to remain near the 2 percent target through 2027.

The Bank of Canada CACA announced on Wednesday that it held its policy rate at 2.25 percent, marking the second consecutive time the central bank has stayed on the sidelines. The Governing Council (Bank of Canada) judged the current policy rate appropriate based on its outlook, although it noted that elevated uncertainty makes it difficult to predict the timing or direction of any future policy rate changes.
A view shows a Bank of Canada building in Ottawa, Ontario, Canada on December 11, 2024. REUTERS/Blair Gable
A view shows a Bank of Canada building in Ottawa, Ontario, Canada on December 11, 2024. REUTERS/Blair Gable
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