Bank of Canada Holds Steady at 2.75% – But the Story’s Not Over

The Bank of Canada has decided to hold the key interest rate at 2.75%. They’re keeping their cards close to the chest — watching, waiting. The global trade waters are choppy, but Canada’s economy, for now, is managing to stay afloat.

Governor Tiff Macklem made it clear: future moves will depend on how this uncertainty plays out. U.S. tariffs are already weighing on our exports, and that ripple is hitting business investment, consumer spending, jobs, and inflation.

Here’s the key line: if the economy continues to weaken — and inflation stays in check — we could see a rate cut. That’s not a promise, but it’s definitely on the table.

Right now, the U.S. has hit us with a barrage of tariffs:

• 50% on steel and aluminum

• 25% on vehicles and parts

• 10% on oil and potash

• Plus a blanket 25% on anything not under the USMCA

Some sectors are taking it hard — job losses, slowdowns — though other areas have stepped up to fill in the gap. But it’s a balancing act, and the scale is tipping.

For now, rates stay put. But the tone from the Bank of Canada? Watchful. Flexible. Ready to move if the weight gets too heavy.