Bank of Canada Holds at 2.25%

The Bank of Canada kept its key policy rate at 2.25% on Wednesday, in line with expectations, while Governor Tiff Macklem signalled that further increases remain possible if inflation does not ease. For Canadians, the decision is a reminder that borrowing costs can change quickly. Households should review monthly cash flow, stress-test mortgage and loan payments, and reconsider non-essential debt. Borrowers may also want to compare fixed and variable-rate options with a qualified adviser. Monitoring inflation data and future Bank of Canada announcements can help Canadians make more informed financial decisions.