Central Bank Decisions
Bank of Canada Maintains Policy Rate at 2.25% Amid Trade Uncertainty
02 Sep 2026
The Bank of Canada kept its benchmark interest rate unchanged at 2.25%, aligning with market expectations. While the Governing Council noted a broadening economic recovery, it highlighted increased upside risks to inflation and heightened uncertainty in the growth outlook due to new trade tariffs.
Why it matters
The decision reflects a cautious balancing act between domestic recovery and external trade shocks. The emphasis on tariff-related uncertainty suggests the BoC may maintain a flexible, data-dependent stance rather than committing to a clear easing or tightening path, impacting CAD volatility.