📣 Bank of Canada holds key interest rate at 2.75% amid tariff uncertainty

The BoC opted to pause rate cuts today, keeping its policy rate steady at 2.75% after reducing it by 225 basis points since June — more than any other G7 central bank.

Governor Tiff Macklem pointed to growing uncertainty around U.S. tariffs under President Trump, saying the Bank needs more clarity before making further moves:
“We still do not know what tariffs will be imposed, whether they’ll be reduced or escalated, or how long all of this will last.”

With Canadian inflation rising to 2.3% and fears that a global trade war could spark another wave of price increases, the Bank is choosing caution over bold action.

While the economy faces headwinds from trade tensions, policymakers are walking a fine line between supporting growth and keeping inflation in check. Markets are now betting on another cut at the BoC’s next meeting in June.

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