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Bank of Canada Expected to Maintain 2.25% Rate

12/10/2025

26 4 Full Breakdown

Summary

Story summary

The Bank of Canada will announce its December 10 rate decision with expectations to hold the policy rate at 2.25%.
Recent strong GDP and job data have reduced the likelihood of a rate cut, supporting a hold through 2026, per analysts including the C.D. Howe Institute.
The central bank aims to balance economic growth while keeping inflation within its target range, and economists broadly expect no immediate policy changes.

History

Historical Context

In response to the 2008 global financial crisis, the Bank of Canada cut its policy rate to 1.00%, aiming to stimulate a contracting economy, which saw a 2.8% GDP decline that year. Today, the Bank maintains a 2.25% rate, reflecting a cautious approach to balancing growth and inflation, a challenge rooted in its historical mandate to regulate credit and currency since its establishment in 1934.

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Story summary

The Bank of Canada will announce its December 10 rate decision with expectations to hold the policy rate at 2.25%.
Recent strong GDP and job data have reduced the likelihood of a rate cut, supporting a hold through 2026, per analysts including the C.D. Howe Institute.
The central bank aims to balance economic growth while keeping inflation within its target range, and economists broadly expect no immediate policy changes.

1 / 2