Bank of Canada Holds Interest Rate at 2.25% in December 2025: Employee Rights

Bank of Canada’s Decision

On Dec. 10, 2025, the Bank of Canada (BoC) held its key interest rate at 2.25%.

The Bank Rate remains at 2.5%, while the deposit rate is 2.2%.

“Major economies around the world continue to show resilience to US trade protectionism, but uncertainty is still high,” the central bank said in a news release.

“If the outlook changes, we’re prepared to respond. [We’re] focused on ensuring that Canadians continue to have confidence in price stability through this period of global upheaval.”

A Hold After 2 Consecutive Cuts

The decision comes after the BoC lowered its key interest rate to 2.25% on Oct. 29, 2025.

For a complete list of interest rate changes and detailed insights, visit our full rate change list.

Next Rate Announcement

🗓️ The next interest rate announcement from the Bank of Canada is scheduled for Jan. 28, 2026.

Key Announcement Highlights

• Canada’s economy grew by a “surprisingly strong” 2.6% in the third quarter. The increase in GDP largely reflected volatility in trade.
• The last 3 months has seen solid employment gains. Canada’s unemployment rate fell to 6.5% in November.
• Job markets in trade-sensitive sectors remain weak and economy-wide hiring intentions continue to be subdued.
• The BoC expects final domestic demand to grow in the fourth quarter after coming in flat for the current quarter.
• CPI inflation slowed to 2.2% in October. Gasoline prices fell, while food prices rose more slowly.
• The effects of last year’s GST/HST holiday is expected to result in CPI inflation remaining higher in the near term.

How Does this Affect Employment?

The BoC’s decision to keep interest rates lower is aimed at stimulating business activity and consumer spending, which will hopefully lead to increased hiring.

However, the overall impact on employment will depend on how the broader economy reacts to lower rates, inflation, and US trade uncertainty.

Lost Your Job?

In the event that you’re fired or let go, it’s crucial to understand your employment rights in Canada.

Non-unionized employees can get up to 24 months of severance pay when they lose their job. This includes individuals working full-time, part-time, or hourly in Ontario, Alberta, and British Columbia (BC).

Severance is the compensation Canadians receive from their employer when they’re fired without cause.

• Fired for cause? It’s very likely that you’re still entitled to full severance pay because employees often don’t meet the conditions necessary for this type of dismissal.

Regardless of a company’s grasp on employment law, they’re legally required to provide proper compensation after firing staff.

This concept applies during challenging economic conditions, downsizing, the closure of a business, or major public health events such as the COVID-19 pandemic.

📺 WATCH: 5 Key Facts About Termination “Without Cause”

Contact an Employment Lawyer

If you’ve been fired or let go for any reason, reach out to the experienced employment law team at Samfiru Tumarkin LLP.

We’ve successfully represented tens of thousands of non-unionized workers in Ontario, Alberta, and BC.

In addition to severance package negotiations, our lawyers can assist you on a broad range of employment matters, including:

📞 Contact us or call 1-855-821-5900 to get the advice you need and the compensation you deserve.