Bank of Canada Maintains Policy Rate at 2.25 Percent, Warns of ‘Uncertainty’ in Economic Outlook

Governor of the Bank of Canada Tiff Macklem participates in a news conference following an interest rate announcement, at the Bank of Canada in Ottawa, on Dec. 10, 2025. The Canadian Press/Justin Tang

The Bank of Canada has decided to once again keep its policy rate at 2.25 percent, but said the path forward is unpredictable due to continued trade disruptions and the upcoming review of the United States-Mexico-Canada Agreement.

“Our forecast for economic growth and inflation in Canada has not changed significantly since our October projection,“ Bank of Canada Governor Tiff Macklem said on Jan. 28.” However, uncertainty around our forecast is heightened, and the range of possible outcomes is wider than usual.”