Bank of Canada Expected to Hold 2.25% Rate for Seventh Straight Decision

Aug 31, 2026 03:00 (21d ago)

The Bank of Canada is widely expected to keep its overnight target unchanged at 2.25% on Wednesday.
The decision would extend the rate hold for a seventh consecutive meeting, with all 12 Wall Street Journal-surveyed economists forecasting no change.
Policymakers and currency traders are monitoring trade tensions, inflation, employment, oil prices, central-bank communications and broader risk sentiment.

The Bank of Canada is widely expected to keep its overnight target at 2.25% on Wednesday, extending its unchanged policy setting for a seventh consecutive decision. All 12 economists surveyed by The Wall Street Journal forecast no move after trade talks between Canada and the United States collapsed last month, as policymakers assess the economic fallout without overreacting. The anticipated pause is viewed as supportive for the Canadian dollar, which Scotiabank strategists assessed as near fair value against the US dollar, while USD/CAD remains rangebound amid steady oil prices, broadly similar monetary-policy stances and limited directional catalysts.