Bank of Canada holds key interest rate at 2.25%
New forecasts show inflation easing toward the 2% target as the bank expects temporary economic drags to fade and growth to recover later in 2026.
- On Wednesday, July 15, 2026, The Bank held its Benchmark interest rate at 2.25 per cent for the sixth consecutive time in Ottawa, as officials expect the economy to rebound following a modest contraction earlier this year.
- Forecasts show inflation in Canada easing toward the two per cent target by next year, with The Bank expecting temporary economic drags to pass and setting the stage for growth throughout 2026.
- Rising gasoline prices pushed inflation in Canada to 3.2 per cent in May, while West Texas Intermediate traded around US$80 on Tuesday, up from US$70 last week but well below the US$110 reached in April.
- Renewed hostilities between the United States and Iran have complicated inflation forecasts, and Benchmark oil prices rose sharply after the Strait of Hormuz was closed to most tanker traffic.
- Financial markets anticipate that The Bank will maintain the current rate through the summer and fall, with analysts projecting a quarter-point increase in December as the central bank monitors domestic and Global data.
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Bank of Canada Holds Interest Rates Steady, Says Outlook for Economic Growth and Inflation Is Positive
OTTAWA—The Bank of Canada held its interest rate steady at 2.25 percent for a sixth straight meeting, saying that economic growth appears to be recovering and inflation looks set to fall as oil prices decline. “The data we have received since April have increased our confidence that the economy is indeed working its way through this period of global upheaval,” Bank of Canada Governor Tiff Macklem told reporters on July 15. Macklem said economic …
The central bank of Canada (BoC) maintained the interest rate at 2.25% per year, in line with what was expected by the market. Despite the high degree of uncertainty, the monetary authority found that growth in the country is gaining pace and projects that inflation will gradually fall after the recent high. The bank and deposit rate were also maintained, at 2.5% and 2.2%, respectively. Subject matter exclusive to subscribers. To have full acces…
(New York = Yonhap News) Correspondent Lee Ji-heon = The Bank of Canada, Canada's central bank, held a monetary policy meeting on the 15th (local time) and [addressed] the benchmark overnight repo...
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