The central bank kept its policy rate unchanged again in July, with the next announcement scheduled for September 2.

The Bank of Canada held its target for the overnight rate at 2.25% today, marking a sixth consecutive hold and effectively confirming the end of the easing cycle that began in mid-2024 and brought the rate down from a peak of 5%.

What the Bank is watching

The Governing Council said the current rate remains appropriate to sustain the recovery and bring inflation back toward the 2% target, pointing to higher oil prices tied to the Middle East conflict, ongoing uncertainty around U.S. trade policy, and signs the Canadian economy resumed growth in the second quarter after stalling for much of the past year. The Bank left its 2026 growth projection at 0.7%, rising to 1.8% in both 2027 and 2028.

The next scheduled rate announcement is September 2, 2026, with the next full Monetary Policy Report due October 28. Given trade negotiations with the U.S. were still unresolved heading into that date, this hold may prove to be more of a pause than a plateau.