Weak economy, rising inflation presented a dilemma for Bank of Canada’s latest rate setting decision, deliberations show (opens original article in a new tab)

The Bank of Canada maintained interest rates at 2.25% as it faced challenges from a weak economy and rising inflation, with officials emphasizing the need for flexible monetary policy amid ongoing uncertainties.

• Bank of Canada held interest rates at 2.25% due to weak economy and rising inflation
• Members emphasized need for monetary policy to remain 'nimble' amid uncertainties
• Inflation remained within central bank's expectations despite energy price pressures
• Economic contraction in Q1 2026 was smaller than predicted, with signs of potential recovery