Bank of Canada Maintains Key Interest Rate at 2.25% for Sixth Consecutive Meeting

The Bank of Canada (BoC) held its benchmark interest rate steady at 2.25% for the sixth consecutive meeting, aligning with market expectations. Policymakers indicated that the current rate remains appropriate to support economic recovery, despite lowering the 2026 GDP growth forecast to 0.7% from 1.2% while raising projections for 2027 and 2028. The central bank expects inflation to gradually ease to around 2.5% in the second half of 2026 before reaching its 2% target in early 2027.