Bank of Canada keeps benchmark rate at 2.25%

The Bank of Canada held its benchmark interest rate steady at 2.25 percent on Wednesday, July 15, 2026, marking the sixth consecutive time it has left borrowing costs unchanged as it balances a domestic economic recovery against persistent global risks. The central bank's governing council concluded the current policy stance remains appropriate to sustain growth and guide inflation back to its two percent target.

In a statement accompanying the decision, the bank noted that Canada's economy is showing signs of improvement after a period of choppy growth. It estimates the economy grew at an annualized rate of 2.5 percent in the second quarter, a rebound from a weak first quarter, with sources of growth broadening to include solid consumer spending, a resumption in export growth, and stabilizing housing activity. The unemployment rate was 6.5 percent in June.

Inflation, however, remains elevated. The Consumer Price Index rose to 3.2 percent in May, driven primarily by higher gasoline prices linked to the ongoing conflict in the Middle East. The bank emphasized that excluding gasoline, inflation was 2.2 percent and core measures remained close to the target. Officials project...