Bank of Canada holds policy rate at 2.25 per cent, GDP growth remains stagnant

The central bank said GDP levels remained “roughly unchanged from the first quarter of 2025 to the first quarter of 2026.”

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The Bank of Canada has decided to hold its policy rate at 2.25 per cent, saying it expects the economy to rebound toward the end of the year despite flatlined growth over the past 18 months.

However, the central bank also noted that U.S. tariffs and uncertainty stemming from the Iran war could further slow progress in bringing inflation down.