OTTAWA – The Bank of Canada’s governing council says it’s difficult to predict which direction interest rates may go as trade uncertainty clouds its outlook.
The central bank released a summary of its deliberations leading up to its decision earlier this month to hold its main policy rate steady at 2.25 per cent.
The document says council members all believed the current rate was at about the right level for the current situation, which has seen the global and Canadian economies stay relatively resilient in the face of trade upheaval.
They exchanged perspectives on what it would take for their views to change, and they agreed to assess incoming data against the bank’s outlook and would be prepared to respond if necessary.
The governing council cited the fate of the Canada-U.S.-Mexico trade agreement as one major source of uncertainty.
They say the dissolution of the trade pact and higher tariffs would be “very damaging” to the Canadian economy, while a resolution that provided some stability would spur business investment.
This report by The Canadian Press was first published Dec. 23, 2025.
