Financial News: Bank Of Canada Once Again Leaves Interest Rates

Bank Of Canada Once Again Leaves Interest Rates Unchanged

(RTTNews) - The Bank of Canada on Wednesday announced its widely expected decision to leave interest rates unchanged for the second consecutive meeting.

The Canadian central bank 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.

"With uncertainty about US tariffs still high, the Canadian economy softer but not sharply weaker, and some unexpected firmness in recent inflation data, Governing Council decided to hold the policy rate as we gain more information on US trade policy and its impacts," the Bank of Canada said.

The bank added, "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."

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

The risks and uncertainties include the extent to which higher U.S. tariffs reduce demand for Canadian exports; how much this spills over into business investment, employment and household spending; how much and how quickly cost increases are passed on to consumer prices; and how inflation expectations evolve, the bank said.

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

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