Bank of Canada Holds Interest Rates Steady Amid Global Uncertainty

Canadians will not see any further cuts in loan rates, as the Bank of Canada has decided to keep interest rates unchanged amid uncertainty stemming from U.S. President Donald Trump's ongoing tariff war.

The central bank’s benchmark interest rate remains steady at 2.75 percent. Previously, the Bank of Canada had reduced rates seven consecutive times, with the most recent cut of 0.25 percentage points taking place on March 12. Following that reduction, major banks including the Royal Bank of Canada, Canadian Imperial Bank of Commerce, National Bank of Canada, and Toronto-Dominion Bank lowered their prime lending rates from 5.20 percent to 4.95 percent.

It is worth noting that the Bank of Canada began its cycle of rate cuts in June 2024. This marks the first time since then that the central bank has opted to hold its benchmark rate steady.