Bank of Canada stays sidelined, preserves optionality for future moves
As markets had overwhelmingly anticipated, the Bank of Canada left its policy settings on hold this morning, and again clearly signalled that rates are already at near-neutral levels, keeping expectations restrained for the year ahead and leaving currency markets broadly unmoved. Policymakers led by Governor Tiff Macklem maintained the policy rate at 2.25 percent for a second consecutive meeting after delivering nine cuts between June 2024 and September 2025. In the official statement setting out the decision, policymakers noted that the current policy rate “remains appropriate, conditional on the economy evolving broadly in line with the outlook we published today....