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Bank Of Canada · Canada Economy · Interest Rates · Monetary Policy
The Bank of Canada announced its decision to maintain the target for the overnight rate at 2.25 percent, along with the Bank Rate at 2.5 percent and the deposit rate at 2.20 percent, following two prior consecutive interest rate reductions.
This widely anticipated move, reported by RTTNews Staff Writer on December 10, 2025, reflects the Governing Council's assessment that the current policy rate is at the right level. The central bank explicitly states this rate is designed to keep inflation close to 2 percent while simultaneously assisting the Canadian economy through a necessary period of structural adjustment.
This pause in rate adjustments signifies a deliberate shift from an easing cycle to a more stable, wait-and-see approach, confirming the Bank of Canada's belief that its previous rate cuts have provided sufficient stimulus to the economy. The decision establishes a predictable monetary policy environment for the immediate future, allowing market participants to anticipate stability as the bank continues to monitor evolving economic indicators and global conditions.
