Bank of Canada leaves key interest rate unchanged at 2.25%

By Canadian Press on December 10, 2025.

OTTAWA — The Bank of Canada has left its key interest rate unchanged at its final rate decision of the year.

The policy rate remains at 2.25 per cent after the Bank of Canada lowered it by a quarter point in October.

Bank of Canada governor Tiff Macklem says in prepared remarks that inflationary pressures continue to be contained despite some added costs related to tariffs.

The central bank says that it sees the current rate as about the right level to keep inflation close to its two per cent target so long as inflation and economic activity progress broadly in line with expectations.

Macklem warns however that uncertainty remains high and the range of possible outcomes is wider than usual.

The Bank of Canada lowered interest rates by one percentage point this year over a series of moves.

This report by The Canadian Press was first published Dec. 10, 2025.

Ian Bickis, The Canadian Press