The Bank of Canada maintained its key interest rate unchanged, but could cut rates in the future
2025-06-04 13:52:50
The Bank of Canada left its key base rate unchanged at 2.75 per cent on Wednesday, saying it was necessary to investigate the impact of US trade policy but saying another rate cut might be necessary if the economy weakened as a result of tariffs. The decision marks the second time in a row that the Bank of Canada has taken a wait-and-see approach, following a nine-month cycle of sharp rate cuts that have cut rates by 225 basis points. "The US-initiated trade conflict remains the biggest headwind facing the Canadian economy," the governor of the Bank of Canada told a news conference. Describing US trade policy as highly unpredictable, he said: "As we get more information, we have a clear consensus to keep policy unchanged."
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