It hasn't changed since March, and on Wednesday morning, the Bank of Canada announced it would once again hold its key lending rate at 2.75 per cent.
Governor Tiff Macklem also announced the Bank Rate will remain at 3 per cent, and the deposit rate at 2.7 per cent.
Most economists anticipated the Bank would stay firm on the rate, and the Bank did cite uncertainty with Friday's deadline looming over trade talks with the U.S.
"While some elements of U.S. trade policy have started to become more concrete in recent weeks, trade talks are fluid, threats of new sectoral tariffs continue, and U.S. trade actions remain unpredictable," said the Bank.
Despite that uncertainty, the Canadian and global economies have shown resilience. Growth moderated in the first half of the year, but the labour market is solid.
Inflation in the U.S. ticked upwards in June, suggesting American businesses have begun to pass tariff costs onto consumers. The European economy grew moderately in the first half of 2025, and China's decline in exports to the U.S. was offset by an increase in exports elsewhere in the world.
The Bank noted robust growth in Canada in the first quarter of 2025, making way for a likely decline in gross domestic product by 1.5 per cent in the second quarter. Business and household spending are restrained by uncertainty spawned by the trade war. Employment in sectors impacted by tariffs weakened, but has held up in other parts of the economy.
If tariffs remain the same after Friday, the Bank expects inflation to stay close to 2 per cent. Lower tariffs will reduce upward pressure on inflation, while higher tariffs will increase it.
The Bank's governing council is proceeding with caution, aware of the risks and uncertainty facing the Canadian economy.
The next policy announcement is September 17.