Bank of Canada Expected to Hold Overnight Rate at 2.25% for Sixth Consecutive Time on Wednesday

According to the Royal Bank of Canada, Canada's central bank is widely expected to hold its overnight rate at 2.25% unchanged when it announces its rate decision on Wednesday. This will mark the sixth consecutive hold following consecutive 50 basis point rate cuts in September and October of last year.

The RBC noted that over the past month, elevated oil prices have not shown signs of triggering a broader persistent inflation shock. The bank added that Canadian economic growth and labor market data have improved, with second-quarter GDP growth accelerating after first-quarter disappointment, and May and June employment figures showing stabilization. The RBC expects the central bank will maintain rates throughout 2026 as per-capita economic growth gradually improves.