Bank of Canada holds key interest rate at 2.75% as tariff uncertainty remains high

The Bank of Canada held its benchmark interest rate steady at 2.75 per cent Wednesday, marking the second straight announcement hold.

Policymakers justified the expected hold, referencing inflation data, and an uncertain tariff outlook.

The bank’s governor, Tiff Macklem, says uncertainty remains high and there was a “clear consensus” to hold the policy unchanged, until more information is gathered.

While he noted there had been some positive developments on the issue of tariffs since the central bank’s last decision, Macklem emphasized the trade restrictions and uncertainty that remain in place.