BREAKING: Bank of Canada holds rates unchanged. USDCAD drops after the decision

Bank of Canada maintained interest rates at 2.75% level, in line with expectations.

Bank of Canada Rate Decision - Key Points

• Rate held steady at 2.75% as BoC monitors US tariff impacts

• Trade uncertainty is the primary concern, creating unpredictable economic outlook

• BoC outlines two scenarios:

  1. Limited tariffs: temporary growth weakness, inflation near 2%

  2. Trade war: possible Canadian recession, inflation exceeding 3%

• Inflation currently at 2.3% (March), expected to decrease with carbon tax removal

• Economic slowdown evident with weakening consumption and business spending

• BoC will "proceed carefully" while supporting growth and controlling inflation

USDCAD dropped after BoC decision.