Bank of Canada Pauses Monetary Policy Amid Economic Uncertainty

The Bank of Canada has paused its monetary policy, keeping its interest rate at 2.25% as it navigates a complex economic backdrop.

Policymakers believe this stance is appropriately calibrated to balance competing forces in the economy, including a weaker growth environment and persistent excess supply.

Core inflation remains contained within the target range of 2%, while headline inflation has been temporarily elevated by energy prices. However, underlying core measures remain close to target, with CPI-trim at 2.0% year over year and CPI-median at 2.1%.