Bank of Canada Policy Announcement (Dec 2025)

The Bank of Canada kept its key policy rate at the bottom of its 2.25% to 3.25% neutral range estimate today, as expected, while acknowledging that the economic outlook has improved somewhat since October’s meeting. We do not think there is enough in the Bank’s latest communication to suggest that hikes next year are now a likelihood, as investors appear to expect, although it will be interesting to see if Governor Tiff Macklem gives another moderately dovish performance at today’s press conference.