The central bank holds rates steady for the sixth consecutive time while revising growth and inflation projections for 2026-2028.
The Bank of Canada maintained its benchmark overnight rate at 2.25%, aligning with market expectations. The decision follows six consecutive holds since October, after an aggressive easing cycle last year to support economic recovery.
The bank revised its 2026 growth forecast downward to 0.7% from 1.2% in April, citing a weaker start to the year. However, it raised projections for 2027 and 2028, anticipating a pickup in the second half of 2024. Inflation forecasts for 2026 were increased to 2.5% from 2.3%, though the bank expects inflation to stabilize near its 2% target over the next two years.