The Bank of Canada has held its key policy interest rate at 2.25% after two consecutive cuts.

The central bank’s decision was widely expected and comes as the Canadian economy remains resilient despite tariffs on certain sectors, such as steel and aluminum, and ongoing trade uncertainty.

Scotiabank’s Chief Economist Jean-François Perrault is back on the podcast to break down the latest rate decision, why the economy has remained relatively strong, his outlook for rate decisions in 2026, and much more.

For legal disclosures, please visit http://bit.ly/socialdisclaim and www.gbm.scotiabank.com/disclosures

Key moments this episode:

1:02 – What’s the main takeaway from the Bank of Canada’s decision?

1:27 – What’s going on in the economy that led the central bank to hold the rate steady at 2.25%?

3:58 – Can you help explain why the Canadian economy has remained resilient, despite the events of the last eight months or so?

7:05 – JF’s outlook for 2026

8:45 – How does JF see inflation progressing over the next few months, given government spending and fiscal policy over the next year. What impact could that have?

12:39 – Will food and housing continue to contribute to driving up the cost of living?

14:40 – JF explains why interest rates may rise again in the second half of 2026

17:20 – What impact does the Bank of Canada’s decision to hold now have on Canadians? With a potential rate increase in six months, what does that mean for those looking to buy big-ticket items?

19:22 – What impact does this decision have for businesses?

19:44 – What impact does the U.S. Federal Reserve’s rate decision have on Canada?

22:00 – What are the main takeaways for Canadians from today’s decision?
23:10 – Co-host Armina Ligaya joins us for a big announcement about the Perspectives podcast