Bank of Canada Expected to Hold Rates Steady Through 2026 Amid Contained Inflation Risks

A Reuters poll indicates that the Bank of Canada is anticipated to maintain its overnight rate at 2.25% on July 15 and keep it at that level well into next year. This outlook is based on largely contained price pressures and a gradual economic recovery. Although inflation rose to 3.2% in May, exceeding the central bank's 1%-3% target, price increases are expected to moderate in the coming months.