Bank of Canada maintained interest rates at 2.75% level, in line with expectations.
Bank of Canada Rate Decision – Key Points
- Rate held steady at 2.75% as BoC monitors US tariff impacts
- Trade uncertainty is the primary concern, creating unpredictable economic outlook
- BoC outlines two scenarios:
- Limited tariffs: temporary growth weakness, inflation near 2%
- Trade war: possible Canadian recession, inflation exceeding 3%
- Inflation currently at 2.3% (March), expected to decrease with carbon tax removal
- Economic slowdown evident with weakening consumption and business spending
- BoC will “proceed carefully” while supporting growth and controlling inflation
USDCAD dropped after BoC decision.
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