Bank of Canada Keeps Interest Rate Steady at 2.25%
The Bank of Canada has decided to keep its key interest rate at 2.25%. Economists widely anticipated this move as the first decision of what seems to be a challenging year ahead.
Current Economic Outlook
The central bank indicated that expectations for the Canadian economy have not changed significantly in recent months. However, it pointed out that unpredictability in U.S. trade policies and geopolitical risks could undermine future prospects.
Official Statement
The Bank’s governing council stated, “The current key interest rate is appropriate, provided that the economy aligns with the forecasts given today. We are prepared to respond if conditions change.”
Recent Trends
In December, the Bank of Canada maintained its rate at 2.25% following two consecutive cuts of 0.25% in the latter half of 2025. Governor Tiff Macklem noted that maintaining the current rate supports economic activity, and it may remain stable for several months.
Key Indicators
- Current Interest Rate: 2.25%
- Unemployment Rate: 6.8%
- Inflation Rate: Close to 2%
The slight rise in unemployment and the inflation rate nearing the Bank’s target reinforce the decision to keep the interest rate steady. Further updates on the situation will be provided as they emerge.
