Bank of Canada holds key interest rate at 2.25% amid global uncertainty

The Bank of Canada has held its benchmark interest rate at 2.25 per cent following its latest policy meeting, marking the third consecutive decision to leave rates unchanged.

According to the central bank’s statement, Governor Tiff Macklem cited ongoing global economic uncertainty as a key factor behind the decision. He pointed to instability linked to conflict in the Middle East and its impact on global energy markets, including rising oil and natural gas prices.

The bank also warned that disruptions in key shipping routes, including the Strait of Hormuz, could affect supply chains for food and other goods, potentially putting upward pressure on inflation. In addition, uncertainty סביב trade policy – including the upcoming review of the Canada–United States–Mexico Agreement and the risk of new U.S. tariffs – continues to weigh on the economic outlook.

Macklem said these factors could slow Canada’s economic growth more than previously expected, particularly if trade tensions escalate or supply disruptions persist.

For Canadian households, the rate hold means no immediate change for borrowers with variable-rate mortgages, whose payments remain tied to the policy rate. Other lending rates are also expected to remain stable in the near term, while the deposit rate remains at 2.20 per cent.