Bank of Canada Keeps Policy Interest Rate Unchanged at 2.25 Percent

The Bank of Canada announced that it has kept its policy interest rate steady at 2.25 percent as the economy and inflation generally follow a trajectory consistent with forecasts.

Interest Rates Kept Unchanged

The Bank of Canada shared its decision with the public to keep the policy interest rate steady at 2.25 percent at its meeting, marking the seventh consecutive meeting in which it has made no changes to the rates.

Breakdown of Interest Rates

In the official statement released by the bank, it was disclosed that the overnight rate is maintained at 2.25 percent, the bank rate at 2.5 percent, and the deposit rate at 2.20 percent.

Economic Developments and Risks

While it was emphasized that conflicts in the Middle East keep energy prices high, it was pointed out that the collapse of trade negotiations between Canada and the United States and new tariffs are creating uncertainty.

Inflation and Cost Increase Risk

A warning was issued that high oil prices and new U.S. customs duties could increase operating costs and reflect on consumer prices over time.