01/28/2026
Breaking News 🗞️ The Bank of Canada kept its benchmark interest rate unchanged at 2.25% at its first policy decision of the year, a move that was widely expected by economists and financial markets.
The central bank said the current rate remains appropriate given today’s economic conditions, but made it clear that uncertainty around the outlook remains unusually high.
Much of that uncertainty stems from ongoing trade tensions, U.S. tariff impacts, and the upcoming review of the Canada/United States/Mexico Agreement.
In prepared remarks, Bank of Canada Governor Tiff Macklem said the Canadian economy has generally evolved in line with the central bank’s expectations since it paused its rate cutting cycle in December. However, he cautioned that it is still too early to determine how well the economy will adjust to current tariffs and ongoing geopolitical risks.
While the Bank believes the policy rate is appropriate based on its outlook, Macklem noted that the timing or direction of the next interest rate change is difficult to predict. Both a rate cut or a rate hike remain possible depending on how economic conditions evolve. Next rate announcement is March 18th.
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