Bank of Canada holds interest rate steady amid economic uncertainty

On January 28, 2026, the Bank of Canada held its benchmark interest rate at 2.25 percent, the central bank’s first decision of the year, officials announced. Governor Tiff Macklem said uncertainty in trade and global economic conditions complicates future rate predictions, including pressures from U.S. monetary policy. The decision was widely expected by economists, and markets responded with muted activity as investors considered potential impacts on inflation, employment and economic growth in Canada.