Bank of Canada Keeps Benchmark Rate at 2.25% on July 15, Sixth Consecutive Hold

According to the Bank of Canada, on July 15, the central bank held its benchmark interest rate unchanged at 2.25%, maintaining the overnight rate target at the same level while keeping the bank rate at 2.5% and the deposit rate at 2.20%. This marks the sixth consecutive hold since October 2025.

The Bank noted that Canada's economy is showing signs of improvement, with growth gaining momentum and inflation expected to gradually ease from recent gains. For 2026, the central bank projects economic growth of 0.7%, with 1.8% growth expected for both 2027 and 2028. Consumer price inflation is anticipated to decline to 2% by early 2027 and average around 2% thereafter.