Ottawa: Following several positive reports concerning the economy and the job market, the Bank of Canada (BoC) has decided to maintain its key interest rate at 2.25%.
Economists had widely predicted that the central bank would hold the rate in its final announcement of the year, given that overall inflation remains around 2.5%.
The decision to hold the rate comes after a period of adjustments aimed at addressing economic vulnerabilities, including inflation that peaked at 2.4% and an unemployment rate that hit a high of 7.1%.
- In September, the Bank of Canada cut the interest rate from 2.75% to 2.5%. This cut followed three consecutive times the rate had been held steady since March.
- Subsequently, in October, the central bank reduced the rate further from 2.5% to 2.25%.
Including the last two adjustments, the Bank of Canada has implemented four rate cuts so far this year. Before the reductions in September and October, the central bank had kept the main policy rate steady at 2.75% for three consecutive times due to uncertainties surrounding the trade war and US tariffs.
