Bank of Canada expected to hold key interest rate steady today, with economists divided on future hikes

A massive Armada is heading to Iran. It is moving quickly, with great power, enthusiasm, and purpose. It is a larger fleet, headed by the great Aircraft Carrier Abraham Lincoln, than that sent to Venezuela. Like with Venezuela, it is, ready, willing, and able to rapidly fulfill its mission, with speed and violence, if necessary. Hopefully Iran will quickly “Come to the Table” and negotiate a fair and equitable deal - NO NUCLEAR WEAPONS - one that is good for all parties. Time is running out, it is truly of the essence! As I told Iran once before, MAKE A DEAL! They didn’t, and there was “Operation Midnight Hammer,” a major destruction of Iran. The next attack will be far worse! Don’t make that happen again. Thank you for your attention to this matter! President DONALD J. TRUMP

The Conference Board Leading Economic Index® (LEI) for China ticked down by 0.1% in December 2025 to 145.3 (2016=100), after decreasing by 0.2% in November. As a result, the LEI ...

The Bank of Canada today held its target for the overnight rate at 2.25%, with the Bank Rate at 2.5% and the deposit rate at 2.20%. The outlook for the global and Canadian economies is little changed relative to the projection in the October Monetary Policy Report (MPR). However, the outlook is vulnerable to unpredictable US trade policies and geopolitical risks. Economic growth in the United States continues to outpace expectations and is projected to remain solid, driven by AI-related investment and consumer spending. Tariffs are pushing up US inflation, although their effect is expected to fade gradually later this year. In the euro area, growth has been supported by activity in service sectors and will get additional support from fiscal policy. China’s GDP growth is expected to slow gradually, as weakening domestic demand offsets strength in exports. Overall, the Bank expects global growth to average about 3% over the projection horizon. Global financial conditions have remained accommodative overall. Recent weakness in the US dollar has pushed the Canadian dollar above 72 cents, roughly where it had been since the October MPR. Oil prices have been fluctuating in response to geopolitical events and, going forward, are assumed to be slightly below the levels in the October report. BOC: UNCERTAINTY IS HEIGHTENED AND WE ARE MONITORING RISKS CLOSELY; IF OUTLOOK CHANGES WE ARE PREPARED TO RESPOND - KEY SOURCE OF UNCERTAINTY IS REVIEW OF USMCA TRADE DEAL BOC: OUTLOOK HAS CHANGED LITTLE SINCE OCTOBER, BUT IT IS VULNERABLE TO UNPREDICTABLE U.S. TRADE POLICIES AND GEOPOLITICAL RISKS - SAYS IT EXPECTS INFLATION TO STAY CLOSE TO 2% TARGET OVER THE PROJECTION PERIOD BOC: U.S. GROWTH PROJECTED TO REMAIN SOLID, DRIVEN BY AI-RELATED INVESTMENT AND CONSUMER SPENDING - REITERATES THAT CURRENT RATE IS APPROPRIATE, CONDITIONAL WITH ECONOMY EVOLVING BROADLY IN LINE WITH FORECASTS BOC: EFFECTS OF TARIFFS ON U.S. INFLATION EXPECTED TO FADE GRADUALLY LATER THIS YEAR