Bank of Canada holds interest rate

The Bank of Canada today held its interest rate at 2.25 percent, with the Bank Rate at 2.5 percent and the deposit rate at 2.20 percent.

The outlook has changed little from October. The outlook is vulnerable to unpredictable US trade policies and geopolitical risks.

Economic growth in the United States continues to outpace expectations and is projected to remain solid. Tariffs are pushing up US inflation.

China’s GDP growth is expected to slow gradually, as weakening domestic demand offsets strength in exports. Overall, the Bank expects global growth to average about 3 percent over the projection horizon.

Recent weakness in the US dollar has pushed the Canadian dollar above 72 cents.

The next scheduled date for announcing the overnight rate target is March 18, 2026.