The Bank of Canada held its policy rate at 2.25% on Wednesday for a sixth straight meeting, in line with market expectations. The BOC said the economy is showing signs of recovery after a weak year and that oil-driven inflationary pressure is easing. It judged current borrowing-costs appropriate to support the recovery and return inflation to its 2% target, while remaining prepared to adjust policy as needed. In its monetary policy report the BOC projected annualized GDP growth of 2.5% in Q2 and

The Bank of Canada held its policy rate at 2.25% on Wednesday for a sixth straight meeting, in line with market expectations. The BOC said the economy is showing signs of recovery after a weak year and that oil-driven inflationary pressure is easing. It judged current borrowing-costs appropriate to support the recovery and return inflation to its 2% target, while remaining prepared to adjust policy as needed. In its monetary policy report the BOC projected annualized GDP growth of 2.5% in Q2 and 1.5% in Q3. Officials cut their 2026 growth outlook sharply to 0.7% due to weak early-year activity but raised 2027 and 2028 forecasts to 1.8% each. The bank now expects average inflation of 2.5% in 2026 (previously 2.3%) and for inflation to return to 2% in early next year.