Bank of Canada holds key interest rate amid global uncertainty

The Bank of Canada left its benchmark interest rate unchanged Wednesday, holding the target for the overnight rate at 2.25 per cent.

The central bank said the Bank Rate remains at 2.5 per cent, while the deposit rate stands at 2.20 per cent.

In its decision, the bank pointed to rising global uncertainty tied to the ongoing conflict in the Middle East, which it said has increased volatility in energy prices and financial markets. The bank warned the scope and duration of the conflict — and its economic effects — remain unclear.

The bank noted global oil and natural gas prices have risen sharply since the conflict began, a factor expected to push inflation higher in the near term. It also warned that supply chain disruptions — including reduced traffic through the Strait of Hormuz — could affect commodities such as fertilizer.

The bank said risks to economic growth are tilted to the downside, while inflation risks have increased due to energy prices.

The next interest rate decision is scheduled for April 29, 2026.