### Bank of Canada Maintains Steady Interest Rate Amid Economic Resilience The Bank of Canada has decided to keep its key interest rate at **2.25%**, a move that reflects a cautious yet optimistic outlook on the Canadian economy. This decision comes as core inflation remains persistent, and recent economic data revisions have created uncertainty in future projections. Economists largely support this steady approach, suggesting that maintaining the rate through **2026** could be beneficial as the economy continues to show signs of resilience despite external pressures, such as tariffs imposed by the U.S. government [https://www.bnnbloomberg.ca/investing/market-outlook/2025/12/09/market-outlook-bank-of-canada-faces-calls-to-keep-225-rate]. ### Structure of the Bank of Canada's Decision 1. **Current Rate Decision**: The Bank of Canada has held its key interest rate at **2.25%** as of December 10, 2025, a decision anticipated by economists and financial markets [https://www.cbc.ca/news/business/bank-of-canada-dec-10-interest-rate-decision-9.7010035]. 2. **Economic Context**: The decision is based on the resilience of the Canadian economy, which has shown positive growth indicators despite challenges such as elevated unemployment and external tariffs [https://daylightng.com/bank-of-canada-keeps-interest-rate-at-2-25]. 3. **Future Outlook**: Economists are advocating for the Bank to maintain this rate through **2026**, citing the need for stability as inflation remains stubbornly high and economic data continues to be revised [https://www.kitco.com/news/off-the-wire/2025-12-10/bank-canada-holds-rates-says-economy-resilient]. ### Supporting Evidence and Data - **Interest Rate**: The Bank of Canada’s key interest rate remains at **2.25%**, with the Bank Rate at **2.5%** and the deposit rate at **2.20%** [https://www.bankofcanada.ca/2025/12/fad-press-release-2025-12-10]. - **Economic Growth**: Canadian economic activity rebounded in the third quarter, growing by **2.6%**, indicating a recovery despite external pressures [https://daylightng.com/bank-of-canada-keeps-interest-rate-at-2-25]. - **Inflation Trends**: Core inflation remains a concern, with economists noting that it has been "sticky," complicating the outlook for future monetary policy [https://www.bnnbloomberg.ca/investing/market-outlook/2025/12/09/market-outlook-bank-of-canada-faces-calls-to-keep-225-rate]. ### Conclusion: A Cautious Yet Optimistic Stance In summary, the Bank of Canada’s decision to maintain the interest rate at **2.25%** reflects a careful balance between fostering economic growth and managing inflationary pressures. 1. **Current Rate**: The key interest rate is held steady at **2.25%**. 2. **Economic Resilience**: The Canadian economy shows signs of resilience, with positive growth despite challenges. 3. **Future Recommendations**: Economists suggest maintaining this rate through **2026** to navigate ongoing uncertainties. This approach aims to provide stability in a fluctuating economic landscape, ensuring that the Bank of Canada remains responsive to both domestic and international economic conditions [https://www.financialpost.com/news/economy/bank-of-canada-holds-interest-rate-december-10].