Bank of Canada Holds Rate at 2.25% for Sixth Straight Meeting

The Bank of Canada held its benchmark overnight rate at 2.25% on July 15, extending its pause to a sixth consecutive meeting as officials grew more confident the economy is rebounding after a soft start to the year. Governor Tiff Macklem said growth appears to have resumed in the second quarter after stalling over the past year, with the bank estimating second-quarter expansion of about 2.5%, even as the unemployment rate held at 6.5% amid ongoing slack. Inflation has climbed above 3% in recent months as the Middle East conflict pushed oil and gasoline prices higher, but the bank expects it to ease to around 2.5% in the second half of 2026 and reach the 2% target in early 2027. Macklem stressed the central bank is willing to look through the direct effects of higher oil prices but is prepared to act if they spill into other goods and services, telling reporters that a series of rate hikes remains on the table if energy-driven inflation proves persistent. The decision, released alongside a fresh Monetary Policy Report, matched economists' expectations and leaves borrowers navigating still-elevated fixed mortgage rates and a heavy renewal wave.