Bank of Canada holds key interest rate steady at 2.75% amid recession uncertainty

There’s growing speculation that a recession could be looming and rising uncertainty that Canada is being dragged into a prolonged trade war with the United States.

Now the Bank of Canada has opted to hold its key interest rate at 2.75 per cent, but is that the right move, given what’s at stake?

The Bank of Canada is walking a tightrope trying to stabilize the economy without making any sudden moves.

Governor Tiff Macklem says the economy ended 2024 in strong shape thanks to rate cuts that boosted household spending and growth, but since then, things have changed.