ECB Signals Possible Interest Rate Move if Inflation Outlook Fails to Improve 
OECD Sees Bank of Japan Raising Interest Rates to 2% by 2027 
BOJ Governor Kazuo Ueda Hints at Rate Hike as Inflation Pressures Build 
DOJ Ends Probe Into Fed Chair Jerome Powell, Boosting Kevin Warsh Confirmation Prospects 
RBA Rate Hike Outlook: Impact on AUD/USD and ASX 200 
Bank of Korea Signals Potential Interest Rate Hikes as Inflation Remains Elevated 
RBA Raises Interest Rates to 4.35% Amid Rising Inflation Risks and Middle East Tensions 
Bank of England Set to Hold Interest Rates as Inflation Risks and Iran War Impact Loom 
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.
