The Bank of Canada has maintained its benchmark interest rate at 2.75% today, as policymakers monitor the impact of tariffs on the economy.
The central bank stated that the Governing Council unanimously decided for a second consecutive time to hold the rate steady, citing “unexpected resilience” in April’s inflation data and stronger-than-expected economic growth in the first quarter of the year.
However, the Bank expects some economic slowdown in the coming months, as both business and consumer spending decline and the effects of tariffs begin to show in economic data.
Governor Tiff Macklem noted that there remains “significant uncertainty” due to ongoing trade tensions with the United States. Although some import tariffs have been lifted since the last rate decision, the threat of further tariffs still looms.
Author: Parteek Mahal
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