What did the Bank of Canada do?

On April 16, 2025, the Bank of Canada (BoC) held its key interest rate at 2.75 per cent.

The Bank Rate remains at three per cent, while the deposit rate was left unchanged at 2.70 per cent.

“The major shift in direction of U.S. trade policy and the unpredictability of tariffs have increased uncertainty, diminished prospects for economic growth, and raised inflation expectations,” the central bank said in a news release.

“Pervasive uncertainty makes it unusually challenging to project GDP growth and inflation in Canada and globally.”

The BoC’s Governing Council is monitoring the following risks:

• The extent to which higher tariffs reduce demand for Canadian exports.
• How much the trade conflict spills over into business investment, employment, and household spending.
• How much and how quickly cost increases from the trade conflict are passed on to consumer prices.
• How inflation expectations evolve due to current economic uncertainty.

Pause after consecutive rate cuts

The central bank’s decision to leave its key interest rate unchanged comes after its seventh consecutive rate reduction on March 12, 2025.

For a complete list of interest rate changes and detailed insights, visit our full rate change list.

Key highlights from the announcement

• Financial markets have experienced significant volatility due to serial tariff announcements, postponements, and continued threats of escalation. However, Canada’s exchange rate has recently appreciated as...

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