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Bank of Canada holds benchmark overnight rate at 2.25% for sixth straight meeting

Bank of Canada holds benchmark overnight rate at 2.25% for sixth straight meeting

The central bank said the economy is rebounding and inflation should ease after topping 3%, even as uncertainty around the Middle East and U.S. trade policy remains elevated.

Fact Check
The official Bank of Canada press release (Bank of Canada maintains the policy rate at 2¼%, July 15, 2026) directly confirms the overnight rate was held at 2.25%, that the economy is improving and inflation (CPI 3.2% in May, i.e., topping 3%) is expected to ease toward 2%, and that Middle East conflict and US trade policy remain key uncertainties—matching every element of the claim. Independent sources (S&P Global, MPA) explicitly describe this as the sixth consecutive hold, and the June 10, 2026 BoC release confirms the prior hold in the sequence. All claim elements are corroborated by primary and secondary sources.
Summary

The Bank of Canada left its benchmark overnight rate unchanged at 2.25% on Wednesday, extending its run of steady policy decisions to six meetings after an aggressive easing cycle last year lowered the rate to its current level in October. The central bank said it is increasingly confident the economy is rebounding, even as uncertainty remains elevated over developments in the Middle East and U.S. trade policy. It also said inflation is expected to ease after peaking above 3%, with prices for non-energy goods mostly contained. The bank had previously said growth should strengthen in the second half of the year while trimming its 2026 growth forecast to 0.7% from 1.2% in April and raising its 2026 inflation forecast to 2.5% from 2.3%, with inflation seen staying near the midpoint of its 1%-3% target range over the following two years.

Terms & Concepts
  • overnight rate: The Bank of Canada's main policy interest rate, which influences borrowing costs across the economy.