06/10/2026
**Bank of Canada Holds at 2.25%**
No surprises today as the Bank of Canada held its key interest rate at **2.25%**.
The real story wasn't the decision itself — it was the messaging behind it.
Despite last week's stronger-than-expected jobs report, (although mainly seasonal jobs, construction, FIFA etc) the Bank continues to view the Canadian economy as relatively weak. Housing activity remains subdued, business investment is sluggish and overall economic growth is still struggling to gain traction.
At the same time, inflation continues to be a concern, driven in part by higher energy costs and ongoing global uncertainty.
That leaves the Bank caught between two competing forces:
📉 A slowing economy that would benefit from lower interest rates.
📈 Persistent inflation pressures that make further rate cuts difficult to justify.
For now, it's a wait-and-see approach.
The question isn't whether Canadians would welcome lower rates — it's whether inflation will cooperate enough to allow them.
Stay tuned and here if you have questions
