The Bank of Canada has decided to keep its benchmark interest rate at 2.75%, maintaining the rate for the third consecutive time. This decision reflects the Bank's cautious approach amid ongoing uncertainties in the global trade environment and persistent inflationary pressures.
Governor Tiff Macklem highlighted the complexities of the current economic landscape, emphasizing the need for flexibility in monetary policy. He noted that the Bank is closely monitoring various scenarios, including potential escalations in trade tensions, and is prepared to adjust its policies as necessary to support economic stability.
Despite recent strong employment figures, the Bank remains vigilant regarding inflation, which continues to hover above its 2% target. The Bank's preferred measures of core inflation have shown signs of moderation, but underlying price pressures persist, influenced by factors such as global trade dynamics and domestic economic activity.
Looking ahead, the Bank of Canada will continue to assess incoming economic data and global developments. Future monetary policy decisions will be data-dependent, with the Bank committed to ensuring price stability and supporting sustainable economic growth.