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Firms’ sentiment remains subdued, according to results from the Business Outlook Survey and the Business Leaders’ Pulse. After a weak year, domestic sales growth is expected to improve slightly. Export sales are expected to be modest. Most businesses plan to maintain or decrease current staffing levels, and they continue to prioritize investment spending on routine maintenance. Firms reported less pressure than last quarter from tariff-related cost increases. Most do not anticipate substantial increases in selling prices. Inflation expectations remain roughly stable between 2.5% and 3%.

This is an account of the deliberations of the Bank of Canada’s Governing Council leading to the monetary policy decision on December 10, 2025.

Governor Tiff Macklem discusses the Bank of Canada’s role in ensuring the stability of money in all its forms, from currency to digital payments. He also outlines how keeping inflation low and stable ensures Canadian money retains its purchasing power.

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%.

Governor Tiff Macklem discusses key issues involved in the Governing Council’s deliberations about the monetary policy decision.