Bank of Canada holds rates at 2.25% as expected

(Sharecast News) - The Bank of Canada left interest rates unchanged at 2.25% on Wednesday, as widely expected, for the sixth meeting in a row. The Bank said in a statement: "Canada's economy is showing signs of improvement. Growth is picking up and inflation is projected to ease gradually from its recent spike. There are still important risks and uncertainties related to the war in the Middle East and US trade policy."

Following 0.7% GDP growth in 2026, the BoC expects the economy to grow by 1.8% in both 2027 and 2028. As the recovery proceeds, economic slack will be gradually absorbed, it said.

TD Securities said the BoC had "watered down its guidance by removing the reference to both the risk of rate cuts and consecutive hikes going forward".