Bank of Canada holds rate at 2.25%, signals small moves ahead

The Bank of Canada held its key interest rate at 2.25% on Wednesday, a move markets had fully priced in. Governor Tiff Macklem said the rate is roughly where it needs to be if the economy stays on track, but stopped short of ruling out future changes.

"If the economy evolves broadly in line with the base case, changes in the policy rate can be expected to be small," Macklem told reporters. "However, uncertainty is unusually elevated and there are many possible outcomes. Monetary policy may need to be nimble."