Bank of Canada holds key rate steady at 2.75 per cent

Canada's central bank has decided to keep its benchmark rate at 2.75 percent in its decision on Wednesday on interest rates. This is the second time in a row, before this, the Bank of Canada had kept interest rates unchanged in April after seven consecutive cuts.

From June 2024 to March 2025, the bank had cut interest rates by a total of 225 basis points in view of controlling inflation and supporting the economy.

The Bank of Canada said in an official statement that Trump has continued to reduce and increase tariffs and uncertainty about this remains at a high level, which has softened the Canadian economy but is not too weak.

The central bank also indicated that if the economy weakens further and inflation remains under control, interest rates can be cut.