OTTAWA — Bank of Canada is hitting pause after seven straight interest rate cuts as it grapples with global trade uncertainty.
The central bank held its benchmark interest rate steady at 2.75 per cent today, the first time it has foregone a cut since last June.
Governor Tiff Macklem says the Bank of Canada kept the key rate unchanged to give the central bank more time to see how the U.S. tariff situation will impact the economy.
The Bank of Canada is also laying out a pair of economic scenarios for how that uncertainty could evolve.
One sees the tariffs negotiated away quickly and the economy stall but escape with limited damage, while the other envisions a lengthy global trade war that sends Canada into a recession for a year.
Macklem says the Bank of Canada is committed to keeping inflation under control and will proceed carefully with future rate decisions.
This report by The Canadian Press was first published April 16, 2025.
The Canadian Press
