The Bank of Canada is set to announce its interest rate decision on Wednesday. This update will be accompanied by revised economic forecasts in its monetary policy report. Currently, the central bank’s key interest rate stands at 2.25%.
Interest Rate Predictions
Economists generally believe that the Bank of Canada will maintain the current interest rate. This anticipated decision comes amid uncertainties surrounding the Canadian economy. A significant factor contributing to this uncertainty is the upcoming revision of the trade agreement between Canada, the United States, and Mexico later this year.
Inflation and Economic Outlook
- The Bank of Canada Governor, Tiff Macklem, mentioned in December that inflation is expected to remain around 2% this year.
- If economic perspectives shift, the central bank is prepared to make necessary adjustments.
According to a recent economic outlook survey published by the bank, the business climate at the end of last year showed modest improvement. However, it still remained low compared to the weak levels recorded in the second quarter of 2025.
Key Points Summary
| Key Information | Details |
|---|---|
| Current Interest Rate | 2.25% |
| Expected Rate Decision | No change |
| Inflation Target | Approximately 2% |
| Trade Agreement Review | Scheduled for later this year |
