The Bank of Canada held its benchmark interest rate steady at 2.25 per cent for a seventh consecutive decision today. The central bank has been on the sidelines since late last year and was widely expected to remain on hold heading into today’s decision. Monetary policymakers at the Bank of Canada use the policy rate to keep a lid on inflation and support economic growth when prices are contained. Inflation rose to three per cent in July after the war in Iran drove a volatile period for gas prices over the spring and summer. Economic growth, meanwhile, has shown signs of rebounding after stagnating for much of the last year. Economists weighing in ahead of today’s decision expected the Bank of Canada would wait to see how new tariffs between Canada and the United States will affect growth and inflation before adjusting the policy rate. This report by The Canadian Press was first published Sept. 2, 2026.
