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Bank of Canada

CAD · Official Website

Latest Statement

⚖️ Neutral

Bank of Canada maintains policy rate at 2¼% - Bank of Canada

2026-01-28

The Bank of Canada has decided to maintain its policy rate at 2¼%, emphasizing a cautious approach amid ongoing uncertainties in the global and Canadian economies. While economic growth is projected to be modest, inflation is expected to remain close to the 2% target, with the central bank prepared to adjust its stance if necessary.

Global economic growth is projected to average about 3%, but is vulnerable to US trade policies and geopolitical risks.
Canada's GDP growth is expected to be modest at 1.1% in 2026 and 1.5% in 2027, with ongoing impacts from US tariffs.
CPI inflation rose to 2.4% in December, but core inflation measures have eased, indicating a potential stabilization around the 2% target.
The Bank remains vigilant and ready to adjust its policy if economic conditions change significantly.

Bank Profile

Mandate

Price stability (1-3% CPI, 2% midpoint)

Decision Types

Overnight rate target, Quantitative easing, Forward guidance

Policy Instruments

Target overnight rate, Bank Rate, Settlement balances rate, Bond purchases

Target Indicators

CPI inflation (2%), Core inflation measures (CPI-trim, CPI-median), Output gap

Communication Style

Clear forward guidance, Monetary Policy Report with projections, deliberative approach

Committee

Governing Council - 6 members (Governor, Senior Deputy Governor, 4 Deputy Governors)

Economic Indicators

Policy Rate	2.25%
USD/CAD	1.3691
GDP Growth	1.0%
M2 Growth	8.2%
10Y Yield	3.18%
2y10y Spread	+0.74%

HISTORICAL TRENDS

Policy Rate

FX Rate

CPI

GDP

10Y Yield

2Y-10Y Spread

Stance

Key Commodities

Top traded commodities for Canada

Commodity	Price	1D	30D
WTI Crude Oil	66.36 USD/barrel	-0.5%	+14.9%
Natural Gas (Henry Hub)	3.13 USD/MMBtu	-0.6%	+7.2%

Recent Statements

Bank of Canada maintains policy rate at 2¼% - Bank of Canada ⚖️ Neutral

2025-12-10

Bank of Canada lowers policy rate to 2¼% - Bank of Canada 🕊️ Dovish

2025-10-29

⚡ Rate

↑0 ↓1 →0

📝 Classified Sentences

⚡ Rate Cutmp_interest_rate

"With ongoing weakness in the economy and inflation expected to remain close to the 2% target, Governing Council decided to cut the policy rate by 25 basis points."

Bank of Canada lowers policy rate to 2½% - Bank of Canada 🕊️ Dovish

2025-09-17

⚡ Rate

↑0 ↓1 →0

📝 Classified Sentences

⚡ Rate Cutmp_interest_rate

"With a weaker economy and less upside risk to inflation, Governing Council judged that a reduction in the policy rate was appropriate to better balance the risks."

Bank of Canada holds policy rate at 2¾% - Bank of Canada 🕊️ Dovish

2025-07-30

⚡ Rate

↑0 ↓0 →1

🔮 Guidance

↑0 ↓1

📝 Classified Sentences

🔮 Guidance Dovishmp_interest_rate

"If a weakening economy puts further downward pressure on inflation and the upward price pressures from the trade disruptions are contained, there may be a need for a reduction in the policy interest rate."

⚡ Rate Holdmp_interest_rate

"With still high uncertainty, the Canadian economy showing some resilience, and ongoing pressures on underlying inflation, Governing Council decided to hold the policy interest rate unchanged."

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