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Canadian Dollar rises after Bank of Canada holds rates at 2.25%

The hold at 2.25% sets up Governor Tiff Macklem’s 14:30 GMT Q&A for investors seeking signals on the next monetary-policy move, after USD/CAD slid back toward the sub-1.3900 area.

Reported · Written up by our desk · Major Pairs

The Canadian Dollar strengthened after the Bank of Canada kept its policy rate unchanged at 2.25%, a decision that matched market expectations. FXStreet said Governor Tiff Macklem is scheduled to take questions from reporters shortly, with investors looking for additional clarity on the bank’s thinking.

FXStreet added that attention is shifting to Macklem’s press conference at 14:30 GMT, where markets will try to gauge clues about the future path of monetary policy following the rate decision.

According to FXStreet, the CAD made a “U-turn” higher versus the US dollar on Wednesday, helping pull USD/CAD back into the sub-1.3900 region.

The report also cited the Bank of Canada’s view of the outlook, pointing to subdued labor demand, continued excess supply indicators, and heightened uncertainty tied to new US tariffs and potential further action.

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