Bank of Canada Maintains Interest Rate Amid Economic Disruption

The Bank of Canada has reaffirmed its commitment to curbing inflation during periods of economic turbulence, according to Jin10. Senior Deputy Governor Carolyn Rogers emphasized this stance during a speech at the University of Toronto, highlighting the challenges posed by the widespread deployment of artificial intelligence and significant shifts in U.S. trade policy. Rogers noted that the Canadian economy is undergoing a period of 'disruption and transformation,' and the central bank aims to prevent inflation from becoming an additional concern during this time. Despite signs of economic weakness, the Bank of Canada has kept its policy interest rate steady at 2.25%, which is at the lower end of its estimated neutral rate range. Rogers and other central bank officials believe that maintaining the policy rate at 2.25% is appropriate as it supports the economy while keeping inflation close to the 2% target.