Skip to Content News Archives Economy Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions Saved Articles My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials HomeNewsEconomyBank of Canada holds interest rate at 2.25% for sixth meeting in a rowEconomy improving, inflation steady, but labour market still weak, says central bankLast updated 19 minutes ago You can save this article by registering for free here. Or sign-in if you have an account.Bank of Canada governor Tiff Macklem announced the rate decision Wednesday. Photo by HYUNGCHEOL PARK/PostmediaThe Bank of Canada on Wednesday held its key interest rate at 2.25 per cent for the sixth consecutive time despite uncertainty over trade relations with the United States and the ongoing conflict in the Middle East.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountorThe central bank’s last move was in October 2025, when it cut the overnight rate by 25 basis points.Its decision to hold comes after the U.S. declined to renew the Canada-U.S.-Mexico Agreement (CUSMA) for another 16 years, triggering a rolling annual review for up to a decade, and the interim peace agreement between the U.S. and Iran appears to be in peril amid strikes from both sides.Despite that, policymakers said Canada’s economy is showing signs of improvement, growth is picking up and inflation is projected to gradually ease from its recent spike.SUBSCRIBER EXCLUSIVE: FP West: Energy Insider brings you behind the oilpatch’s closed doors with exclusive insights from insiders every Wednesday morning.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of FP West: Energy Insider will soon be in your inbox.We encountered an issue signing you up. Please try again“Although the Canada-U.S.-Mexico Agreement is now subject to annual reviews, more businesses report they are finding ways to navigate through the uncertainty,” they said in a statement. “Government spending also contributes to higher economic activity over the projection.”Headline inflation rose to 3.2 per cent in May, largely driven by higher gas prices amid supply uncertainty, though core inflation was at 2.2 per cent.Policymakers anticipate the next consumer price index (CPI) release will show inflation remained high in June, but will gradually fall to two per cent by early 2027, “although this forecast is dependent on the path for oil and gasoline prices.”They also said there are “clear signs” economic growth has resumed in the second quarter, with gross domestic product estimated to have grown by 2.5 per cent. Solid consumer spending, potentially stabilizing housing activity, export growth and a projected increase in business investment — due to a boost from the oil and gas sector — contributed to their forecast.The Bank of Canada predicts GDP growth of 0.7 per cent in 2026, followed by 1.8 per cent growth in both 2027 and 2028. Join the Conversation This website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.