Canada Interest Rates Outlook: BoC Holds Steady as Inflation Risks Shift

Canada's interest-rate path looks to be in a wait-and-see phase. The Bank of Canada's policy rate stands at 2.25%, and the next scheduled rate announcement is April 29, 2026.

Insight

Luxmore thinks

Markets are balancing softer growth against inflation risks linked to energy prices. BNN Bloomberg reported that a hold is expected, while Reuters coverage cited a poll showing the Bank of Canada may keep rates unchanged this year and remain patient on energy-driven inflation.

On the policy side, a steady rate can give the central bank more time to see whether higher gasoline and energy costs filter into broader inflation. On the market side, the same backdrop leaves room for a future shift if inflation stays sticky or growth re-accelerates.