Bank of Canada holds key interest rate at 2.25%
The Bank of Canada is holding steady in its latest rate decision of 2025 keeping the overnight rate at 2.25 per cent.
“We agreed that a policy rate at the lower end of the neutral range was appropriate to provide some support for the economy as it works through this structural transition while keeping inflationary pressures contained,” said Bank of Canada Governor Tiff Macklem.
The bank’s main objective is to keep inflation around 2 per cent.
The decision comes just over a month after Prime Minister Mark Carney delivered his first budget as prime minister. It committed to spending almost $300 billion over five years on capital investments in new infrastructure, productivity, housing, defence and security.
The Bank of Canada’s next rate decision is Jan. 28, 2026.
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