Economic Buzz: Bank of Canada holds interest rates unchanged for second consecutive meeting

The Bank of Canada yesterday kept interest rates unchanged for the second consecutive meeting. The Canadian central bank said it decided to maintain its target for the overnight rate at 2.75 percent, with the Bank Rate at 3% and the deposit rate at 2.70%. With uncertainty about US tariffs still high, the Canadian economy softer but not sharply weaker, and some unexpected firmness in recent inflation data, Governing Council decided to hold the policy rate as we gain more information on US trade policy and its impacts, the Bank of Canada said. The Canadian economy has displayed resilience in the first quarter of 2025, with an annualized GDP growth of 2.2%.

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