Bank of Canada holds policy rate at 2¾% in April 2025

 











    The Bank of Canada today maintained its target for the overnight rate at 2.75%, with the Bank Rate at 3% and the deposit rate at 2.70%.

The major shift in direction of US trade policy and the unpredictability of tariffs have increased uncertainty, diminished prospects for economic growth, and raised inflation expectations. Pervasive uncertainty makes it unusually challenging to project GDP growth and inflation in Canada and globally. Instead, the April Monetary Policy Report (MPR) presents two scenarios that explore different paths for US trade policy. In the first scenario, uncertainty is high but tariffs are limited in scope. Canadian growth weakens temporarily and inflation remains around the 2% target. In the second scenario, a protracted trade war causes Canada’s economy to fall into recession this year and inflation rises temporarily above 3% next year. Many other trade policy scenarios are possible. There is also an unusual degree of uncertainty about the economic outcomes within any scenario, since the magnitude and speed of the shift in US trade policy are unprecedented.

For more details please visit: https://www.bankofcanada.ca/2025/04/fad-press-release-2025-04-16/


Dates Target
January 29 3.00%
March 12 2.75%
April 16 2.75%
June 4 Interest rate Announcement
July 30 Interest rate Announcement
September 17 Interest rate Announcement
October 29 Interest rate Announcement
December 10Interest rate Announcement

Note. Rates are subject to change

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