Bank of Canada Holds Rate at 2.25% for a Sixth Straight Meeting

The Bank of Canada held its benchmark overnight interest rate at 2.25% on July 15, extending a streak of holds that began last December and has continued through all of 2026 to date. The decision, the central bank's sixth consecutive hold, means variable mortgage and home equity line of credit rates stay where they are for now. Governor Tiff Macklem's governing council said Canada's economy is showing signs of improvement, with growth picking up and inflation projected to ease gradually from a recent spike back toward the 2% target by early 2027, a forecast it stressed depends on the path of oil and gasoline prices. Annual inflation had ticked up to about 3.2% in May, exceeding the bank's 3% upper limit for the first time in nearly two and a half years, largely reflecting higher energy costs linked to the Middle East conflict. Despite that, policymakers maintained a wait-and-see stance amid a sluggish economy and elevated uncertainty around US trade policy and the annual reviews of the North American trade agreement. The bank said it remains prepared to adjust policy as needed, with its next scheduled decision on September 2.