Governor of the Bank of Canada Tiff Macklem walks outside the Bank of Canada building in Ottawa, Ontario, on June 22, 2020. File Photo / Reuters
Ottawa: The Bank of Canada on Wednesday maintained its target for the policy rate at 2.75 percent.
According to the central bank, the country's GDP rose in the first quarter of 2025 due to a pull-forward in exports to get ahead of tariffs, but it likely declined by about 1.5 percent in the second quarter, mostly due to a sharp reversal in exports following the pull-forward, as well as lower US demand.
GDP growth may pick up to about 1 percent in the second half as exports stabilize and household spending increases gradually, said the central bank.
It added that its Governing Council is proceeding carefully, with particular attention to the risks and uncertainties facing the Canadian economy derived from higher US tariffs and trade disruptions.
