Bank of Canada Freezes Rate at 2.25% for Sixth Time: Why Vancouver Buyers Can't Bank on 2027 Cuts

The Bank of Canada maintained its key interest rate at 2.25 per cent on Wednesday, marking the sixth consecutive hold and signaling that borrowers should not expect relief from higher carrying costs until at least mid-2027. Governor Tiff Macklem announced the decision on July 15, 2026, noting that while the economy stalled in early 2026, growth has resumed with the bank projecting 2.5 per cent annualized growth for the second quarter. All 36 economists surveyed by Reuters ahead of the announcement correctly predicted the hold, with the majority forecasting no rate changes until July 2027 at the earliest. This stability comes as inflation hit 3.2 per cent in May—above the bank's target—but is expected to ease toward the 2 per cent target by early 2027.