06/10/2026
The Bank of Canada held its overnight policy rate steady at 2.25% this morning.
While domestic economic conditions have cooled slightly—with slower government spending, housing activity, and business investment—growth is expected to pick up modestly as we approach the second half of the year.
Key Takeaways: The main focus of the bank is to keep inflation as close to its target of 2% as they can.
The Inflation Picture: Driven by ongoing energy pressures from the conflict in Iran, CPI inflation hit 2.8% in April.
The Outlook: The Bank is treating this as a temporary supply shock for now, but they are watching closely and stand ready to raise rates if broader inflation starts to take root.
Current projections suggest the rate will hold at 2.25% for the rest of the year, with a potential gradual rise toward 2.75% by the end of 2027 if the economy stays on its current track.