Canada Keeps Interest Rates Steady Amid Economic Uncertainty

The Bank of Canada has held its policy rate at 2.25% since October 2025, which is at the bottom of the bank's estimated neutral range.

This decision comes as Canada's economy shows signs of improvement while facing significant uncertainty from global events and trade tensions.

Canada's economy grew by 3.3% in the second quarter, with broad-based improvements in consumer spending, housing activity, exports, and business investment.

The labour market has shown some weakness, with employment falling by 41,700 in August and wage growth slowing to 2.0% year-over-year.