Bank of Canada Holds Policy Rate at 2.25% for Sixth Consecutive Decision

On Wednesday, the Bank of Canada held its benchmark interest rate at 2.25% for the sixth consecutive decision and said it expects the economy to rebound after a difficult start to the year, The Canadian Press reported (7-15-26).

Bank of Canada Governor Tiff Macklem said the economy continues to face heightened uncertainty, but officials are becoming more confident that it is working through those headwinds.

Macklem said the Governing Council remains prepared to adjust the policy rate if needed. However, officials currently view the 2.25% rate as appropriate for returning inflation to the central bank’s 2% target while supporting an economic recovery.

He also warned that inflation could remain above the 2% target as it eases. His prepared statement removed earlier references to the potential need for consecutive rate increases or an additional cut, while he emphasized that the bank’s outlook and policy stance remain closely tied to global energy markets.