The Bank of Canada maintained its benchmark rate at 2.25%, in line with expectations, stating that its outlook for GDP and inflation has remained basically unchanged since October, albeit uncertainty continues to weigh on it. Trade tensions and tariffs are likely to hamper economic activity until the end of 2025, with growth forecast at 1.1% in 2026 and 1.5% in 2027.
The BoC expects inflation to ease further as temporary base effects from last year’s GST/HST holiday fade, allowing inflation to stay near the 2% target as excess supply offsets tariff-related cost pressures.
Policymakers said elevated uncertainty makes it difficult to predict the timing or direction of the next rate move, reinforcing a data-dependent approach. While the decision was widely expected, the Bank highlighted that geopolitical developments could impact the outlook in 2026.


Japan Government Backs Earlier BOJ Rate Hike as Inflation Pressures Build
BOJ Rate Decision in Focus as Sticky Inflation, Weak Yen Shape USD/JPY and Nikkei Outlook
Singapore Central Bank’s Exchange Rate Policy Explained: Why MAS Uses the S$NEER Instead of Interest Rates
Chile Central Bank Holds Interest Rate at 4.5% as Inflation and Global Risks Persist
Japan Services Producer Prices Rise 3.2% in June, Supporting BOJ Rate Hike Expectations
Japan PM Sanae Takaichi Unveils Growth Plan as BOJ Independence Concerns Lift Bond Yields
RBA Signals More Rate Hikes Possible as Australia Battles Stubborn Inflation
Brazil Cuts Selic Rate to 14% as Inflation Eases but Risks Persist
Eurozone Bond Yields Fall as Oil Slump Eases Inflation Fears Ahead of Central Bank Meetings
Fed Holds Interest Rates Steady as Kevin Warsh Says Rising Treasury Yields Tighten Financial Conditions 



