Bank of Canada Holds Key Rate at 2.25% Amid Improving Economic Outlook and Fading Inflation
| Pair | Now | Since publish |
|---|---|---|
| USDCAD | — | — |
- Bank of Canada held interest rate at 2.25% for sixth consecutive meeting.
- Cited improving economy and easing inflation outlook.
- Ready to adjust monetary policy as needed.
The Bank of Canada (BoC) on Wednesday announced its decision to hold the target for the overnight rate at 2.25%, a move widely anticipated by markets and marking the sixth consecutive meeting without a change. The central bank also kept the Bank Rate at 2.50% and the deposit rate at 2.20%. Policymakers noted that the Canadian economy is showing signs of improvement and growth is picking up, while inflation is projected to gradually ease from its recent spike, with oil price-driven inflation fading. The Governing Council affirmed that the current policy rate remains appropriate to sustain the economic recovery and guide inflation back to its 2% target, reiterating its readiness to adjust monetary policy as needed based on economic and inflation outlooks.