Bank of Canada maintains policy rate at 2¼%

Compensation costs for civilian workers increased 0.8 percent, seasonally adjusted, for the 3-month period ending in September 2025, the U.S. Bureau of Labor Statistics reported ...

Good morning. I’m pleased to be here with Senior Deputy Governor Carolyn Rogers to discuss today’s monetary policy decision. Today, Governing Council maintained the policy interest rate at 2.25%. We have three main messages. First, steep US tariffs on steel, aluminum, autos and lumber have hit these sectors hard, and uncertainty about US trade policy is weighing on business investment more broadly. But so far, the economy is proving resilient overall. Second, inflationary pressures continue to be contained despite added costs related to the reconfiguration of trade. Total CPI inflation has been close to the 2% target for more than a year now, and we expect it to remain near the target. Third, in the current situation, Governing Council sees the current policy rate at about the right level to keep inflation close to 2% while helping the economy through this period of structural adjustment. Nevertheless, uncertainty remains high and the range of possible outcomes is wider than usual. If the outlook changes, we are prepared to respond. BoC's Gov. Macklem: Canadian economy is proving resilient overall despite US tariffs. BoC's Gov. Macklem: We agreed that a policy rate at the lower end of the neutral range was appropriate to provide some support for the economy. BoC's Gov. Macklem: Our view is still that GDP will expand at moderate pace in 2026 and that inflation will remain close to target. BOC: REITERATES THAT IF OUTLOOK CHANGES, IT IS PREPARED TO RESPOND