Bank of Canada Governing Council meeting minutes from the December 10, 2025 decision

The Bank of Canada has maintained the policy rate at 2.25%, judging it as appropriate after previously cutting rates by 100 basis points in 2025. The Canadian economy shows resilience, supported by upward GDP revisions, but Q4 growth is expected to slow. The labor market is improving with an unemployment rate down to 6.5%, though hiring remains concentrated in part-time jobs. Inflation is near target levels with CPI at 2.2% and core inflation around 2.5%. There is high uncertainty due to trade risks, particularly surrounding CUSMA negotiations, and the Governing Council is prepared to respond based on incoming data. Overall, while the economy shows resilience, significant uncertainties remain that could influence future policy decisions depending on economic data metrics.