The Bank of Canada left its key interest rate unchanged at 2.25% in January, citing increased global uncertainty and instability in US trade policy. This is stated in the summary of the Governing Council meeting published on January 28.

The regulator noted that Washington's actions in the areas of trade, foreign policy, and the independence of the Federal Reserve have made the global economic environment less predictable. According to Canadian officials, the prospects for global growth remain vulnerable due to US protectionist measures and heightened geopolitical tensions.

At the same time, the US economy is showing resilience thanks to strong consumption and investment in artificial intelligence, but tariff risks could increase inflationary pressure. In Canada, excess supply persists: the labor market is gradually cooling, and business investment activity remains subdued.

The upcoming review of the CUSMA agreement between Canada, the US, and Mexico is cited as a separate factor of uncertainty. According to the regulator, possible changes could slow down investment decisions.

Bank of Canada Governor Tiff Macklem stressed that the future trajectory of monetary policy will depend entirely on incoming data. For now, the regulator intends to maintain its accommodative stance, supporting the economy amid structural restructuring.