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Bank of Canada

CAD · Official Website

Latest Statement

⚖️ Neutral

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

2026-03-18

The Bank of Canada has decided to maintain its policy rate at 2.25% amid heightened global economic uncertainty due to the ongoing conflict in the Middle East, which has increased volatility in energy prices and financial markets. While the Canadian economy is expected to grow modestly, recent data indicate weaker-than-anticipated growth and elevated risks to economic activity.

Global energy prices have surged due to the Middle East conflict, contributing to near-term inflationary pressures.
Canada's GDP contracted by 0.6% in the fourth quarter of 2025, with domestic demand growing but exports showing ongoing weakness.
CPI inflation has eased to 1.8%, but rising energy prices are expected to push total inflation higher in the coming months.
The policy rate remains unchanged at 2.25% as the Governing Council assesses the economic impact of global uncertainties.

⚡ Rate

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📝 Classified Sentences

⚡ Rate Holdmp_interest_rate

"Against this overall backdrop, Governing Council decided to maintain the policy rate at 2.25%."

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	1.3909
GDP Growth	1.0%
M2 Growth	8.2%
10Y Yield	3.46%
2y10y Spread	+0.67%

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	114.01 USD/barrel	+0.7%	+71.0%
Natural Gas (Henry Hub)	3.04 USD/MMBtu	+6.3%	-3.5%

Recent Statements

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

2026-01-28

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."

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