Ottawa- The Bank of Canada has kept its overnight interest rate unchanged at 2.25%, saying the current stance remains appropriate as inflation stays near the 2% target. While global growth is expected to average about 3%, the outlook remains vulnerable to unpredictable U.S. trade policies and geopolitical risks.
Canada’s economy showed signs of slowing late last year, with exports pressured by U.S. tariffs, though domestic demand and employment have improved modestly. Inflation eased to around 2½% on core measures in December, and the Bank expects it to remain close to target.
The central bank said it is closely monitoring risks and stands ready to respond if economic conditions change. The next rate decision is scheduled for March 18, 2026.
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