Bank of Canada to Publish Deliberations Behind Its Latest Rate Hold

The Bank of Canada is set to publish, on July 29, the summary of deliberations behind its July 15 decision to keep its benchmark overnight rate unchanged at 2.25%, a sixth consecutive hold. The document, released in the afternoon Eastern time, offers a window into how the Governing Council weighed competing risks. At its July meeting, the central bank said Canada's economy had been weak but was showing signs of improvement, with growth expected to pick up and inflation projected to ease back toward 2%. Policymakers noted that economic growth appeared to have resumed after stalling over the past year, while the labour market remained soft, with unemployment at 6.5% in June. The Bank flagged two central risks to the outlook: the evolution of Canada's trade relationship with the United States, now subject to annual reviews, and the war in the Middle East, which has pushed up energy prices and fed cost pressures through supply chains. CPI inflation rose to 3.2% in May on higher gasoline costs, and the Bank expects it to ease in the second half of 2026. The next rate decision is scheduled for September 2.