Bank of Canada Holds Rate as Global Uncertainty Persists

The Bank of Canada has maintained its policy rate at 2.25%, citing uncertainty from the ongoing conflict in the Middle East and US trade policy changes.

Governing Council is looking through the war's immediate impact on inflation but will not let higher energy prices become persistent inflation, according to the bank.

The outlook for economic growth in Canada remains little changed from the January projection, with GDP growth forecast at 1.2% in 2026, rising to 1.6% in 2027 and 1.7% in 2028.