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Bank of Canada Expected to Keep Key Rate Steady This Week — and Maybe All Year Long
The Bank of Canada maintains rates at 2.25% amid trade uncertainties and elevated unemployment, with markets predicting an extended hold for 2026, according to LSEG Data & Analytics.
- On Jan. 26, 2026, the Bank of Canada will hold its first interest-rate decision of 2026 on Wednesday, with many economists expecting no change later this week and possibly for the rest of the year.
- Mixed December readings show the Bank of Canada held its policy rate steady after two consecutive quarter-point cuts as early data suggest growth slowed in the fourth quarter.
- Financial markets show odds for a rate hold this week stood at nearly 89 per cent as of Friday, and long-term expectations baked into bond market prices guide lenders' mortgage and loan rates.
- Avery Shenfeld expects no change on Wednesday but said Macklem might soften his tone, and signalling cuts are done could lure some homebuyers this spring, raising mortgage demand.
- Given the scheduled trade review later this year, trade is the clearest risk with U.S. tariffs and a major shock like a stock market downturn could force policy changes, Avery Shenfeld warned.
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Bank of Canada Expected to Keep Key Rate Steady This Week—and Maybe All Year Long
Many economists expect no change in the Bank of Canada’s benchmark interest rate later this week—and, possibly, for the rest of the year. The central bank will make its first interest rate decision of 2026 on Wednesday. Financial market odds for a rate hold this week stood at nearly 89 percent as of Friday, according to LSEG Data & Analytics. The Bank of Canada held its policy rate steady at 2.25 percent in December, coming off two consecutive q…
·New York, United States
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On Wednesday, the central bank will issue its first decision on interest rates for 2026.
·Montreal, Canada
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Winnipeg Free Press+7 Reposted by 7 other sources
Bank of Canada expected to keep key rate steady this week — and maybe all year long
Breaking News, Sports, Manitoba, Canada
·Winnipeg, Canada
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Coverage Details
Total News Sources17
Leaning Left4Leaning Right1Center5Last UpdatedBias Distribution50% Center
Bias Distribution
- 50% of the sources are Center
50% Center
L 40%
C 50%
Factuality
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