For the second time in a row, the Bank of Canada held the overnight interest rate at 2.25%.

The central bank made the decision citing that little had changed from its 2025 October Monetary Policy Report, so holding rates “remain appropriate” as Canada’s current economic outlook appears uncertain given the re-negotiation of the Canada-United States-Mexico Agreement (CUSMA) and evolving trade policies.

Scotiabank’s Chief Economist Jean-François Perrault is back on the podcast to break down the latest rate decision, what it could mean for Canadians and what we could see in the second half of the year. 

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

Key moments for this episode:

1:12 – JF’s take on the main takeaway from the Bank of Canada’s latest decision

2:39 – JF on the current level of uncertainty and the challenge it poses

4:30 – How the Canadian economy has been “surprisingly resilient”

6:25 – The outlook for economic growth in 2026

7:51 – What is the “structural adjustment” that Canada is going through?

9:29 – What this all means for the average Canadian

10:49 – What does this mean for Canadians looking to buy a home or renew their mortgages?

12:57 – What are the takeaways for businesses?

14:20 – What are the main takeaways for Canadians from this decision?