Text of the Bank of Canada’s latest policy interest rate decision

OTTAWA - The Bank of Canada kept its policy interest rate at 2.25 percent on Wednesday. Here is the central bank's statement on the decision: The Bank of Canada maintained its policy interest rate at 2.25 percent on Wednesday. Here is the central bank's decision: The Bank of Canada held its overnight rate target at 2.25 percent, with the Bank Rate at 2.5 percent and the deposit rate at 2.20 percent.

Geopolitical tensions in the Middle East are keeping energy prices elevated, along with new US tariffs and Canadian retaliation following the collapse of trade talks. Economic growth remains solid in the United States, driven by consumer spending and AI investment, while the euro area grew more than expected in Q2. China's economy slowed.

Globally, the economy has shown resilience despite geopolitical headwinds. Canadian economic activity strengthened in the second quarter, with GDP up 3.3 percent. Inflation remains high, with CPI hovering around three percent due to persistently high gasoline prices. Labour market conditions have improved, with the unemployment rate dropping to 6.4 percent in July.

The Bank of Canada will continue to monitor the economic rebound and inflation outlook, and is prepared to adjust monetary policy as needed to ensure price stability amidst global uncertainties.