Bank of Canada set for interest rate decision as tariff uncertainty persists

By Canadian Press on June 4, 2025.

OTTAWA — The Bank of Canada is set to make an interest rate decision today as the United States’ trade dispute continues to cloud the economic outlook.

A poll of economists provided by LSEG Data & Analytics ahead of the decision shows they expect the central bank will leave its policy rate unchanged at 2.75 per cent.

The central bank decided to hold its key rate steady at its last meeting in April, saying at the time that it needed more clarity on how the Canada-U.S. trade dispute would impact the economy.

Statistics Canada said Friday that real gross domestic product topped expectations in the first quarter of the year as businesses rushed to get ahead of the tariff impact.

The Bank of Canada said in April it would be less forward-looking for the time being and did not publish a central forecast for inflation and economic growth amid the considerable uncertainty.

Annual inflation cooled to 1.7 per cent in April, dragged down by the removal of the consumer carbon price even as underlying inflationary pressures ticked higher.

This report by The Canadian Press was first published June 4, 2025.

The Canadian Press