Bank Of Canada Leaves Interest Rates Unchanged For Third Straight Meeting

In a widely expected move, the Bank of Canada on Wednesday announced that it has once again decided to leave interest rates unchanged.

The Bank of Canada said it decided to maintain its target for the overnight rate at 2.75 percent, with the Bank Rate at 3 percent and the deposit rate at 2.70 percent.

The Canadian central bank attributed the decision to leave rates unchanged for the third straight meeting to still high uncertainty, the Canadian economy showing some resilience, and ongoing pressures on underlying inflation.

"We will continue to assess the timing and strength of both the downward pressures on inflation from a weaker economy and the upward pressures on inflation from higher costs related to tariffs and the reconfiguration of trade," the Bank of Canada said.

They added, "If a weakening economy puts further downward pressure on inflation and the upward price pressures from the trade disruptions are contained, there may be a need for a reduction in the policy interest rate."

The Bank of Canada said its Governing Council is proceeding carefully, with particular attention to the risks and uncertainties facing the Canadian economy.

"We are focused on ensuring that Canadians continue to have confidence in price stability through this period of global upheaval," the Bank of Canada said. "We will support economic growth while ensuring inflation remains well controlled."

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