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Bank of Canada Holds Key Rate at 2.25% for Fifth Consecutive Time on June 10

2026-06-24 17:37:33

According to Bank of Canada meeting minutes released June 25, the central bank held its benchmark interest rate at 2.25% on June 10, marking the fifth consecutive pause. The decision reflects a balanced approach amid weak economic conditions and limited evidence that rising crude oil prices have transmitted to other goods and services. Governor Tiff Macklem and five other senior policymakers unanimously supported the hold, which they deemed appropriate to address both inflation pressures and economic headwinds. Canada's economy unexpectedly contracted for two consecutive quarters. The minutes stated: "In addressing rising inflation, the council is neither wanting to overreact nor to underreact."

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