Bank of Canada leaves key interest rate unchanged at 2.25%
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The Bank of Canada is pictured in Ottawa on Friday, March 3, 2023.
The Bank Canada kept its key interest rate target on hold at 4.5 per cent on Wednesday. Photo by Sean Kilpatrick /The Canadian PressArticle contentTORONTO — The Bank of Canada left its key interest rate unchanged on Wednesday as the economy continues to show resilience in the face of tariff pressures.Sign In or Create an AccountEmail AddressContinueor View more offersArticle contentThe policy rate remains at 2.25 per cent after the Bank of Canada lowered it by a quarter point in October, signalling at the time that the rate could be at the right level to keep inflation in check while supporting the economy.Article contentWe apologize, but this video has failed to load.Try refreshing your browser, ortap here to see other videos from our team.Article contentArticle contentBank of Canada governor Tiff Macklem said in prepared remarks Wednesday that inflationary pressures remain contained despite some added costs related to tariffs.Article contentTop StoriesGet the latest headlines, breaking news and columns.There was an error, please provide a valid email address.Sign UpBy signing up you consent to receive the above newsletter from Postmedia Network Inc.Thanks for signing up!A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againInterested in more newsletters? Browse here.Article contentHe said that while recent GDP and employment data has surprised to the upside, it hasn’t changed the governing council’s overall outlook on growth.Article content“While information since the last decision has affected the near-term dynamics of GDP growth, it has not changed our view that GDP will expand at a moderate pace in 2026.”Article contentHe said uncertainty about U.S. trade policy continues to weigh on business investment and that the upcoming review of the Canada-United States-Mexico Agreement will add further pressure.Article contentDespite the headwinds, the Canadian economy showed a surprising 2.6 per cent annualized jump in the third quarter, while the unemployment rate dropped 0.4 percentage points to 6.5 per cent in November.Article contentThe changes reflect swings in trade patterns that are making it difficult to get a clear picture of the future, said Macklem.Article content“The volatility we’re seeing in trade and quarterly GDP make it more difficult to assess the underlying momentum of the economy.”Article contentMacklem warned that uncertainty remains high and the range of possible outcomes is wider than usual as the economy goes through a fundamental transformation.Article content“This is more than a cyclical downturn — it’s a structural transition.”Article contentThe Bank of Canada lowered interest rates by one percentage point this year over a series of moves.Article contentThis report by The Canadian Press was first published Dec. 10, 2025.Article contentTrending David Rosenberg: 10 reasons why we're now bullish on the Canadian dollar for the first time in many years News This Canadian mine is as big as a city. It has a basketball court and its chefs serve 4,000 meals daily Commodities Bank of Canada holds interest rate at 2.25%, citing resilient economy Economy Posthaste: A market phenomenon not seen in 50 years is raising red flags at the world's central bank News Mark Wiseman top contender for ambassador to U.S. as Kirsten Hillman prepares to step down Finance Share this article in your social networkCommentsYou must be logged in to join the discussion or read more comments.Create an AccountSign in Join the Conversation Postmedia is committed to maintaining a lively but civil forum for discussion. Please keep comments relevant and respectful. Comments may take up to an hour to appear on the site. You will receive an email if there is a reply to your comment, an update to a thread you follow or if a user you follow comments. Visit our Community Guidelines for more information. David Rosenberg: 10 reasons why we're now bullish on the Canadian dollar for the first time in many years News This Canadian mine is as big as a city. It has a basketball court and its chefs serve 4,000 meals daily Commodities Bank of Canada holds interest rate at 2.25%, citing resilient economy Economy Posthaste: A market phenomenon not seen in 50 years is raising red flags at the world's central bank News Mark Wiseman top contender for ambassador to U.S. as Kirsten Hillman prepares to step down Finance