Bank of Canada Holds Interest Rate Amid Escalating Trade Tensions
The Bank of Canada is set to make an announcement about its overnight rate on September 2, 2026. The last change came in July when the rate was held at 2.25%. It has remained unchanged since October 2025.
MoneySense spoke with Jamie David, VP of Mortgage at Ratehub, about what Canadians can expect from this announcement and how they should adapt.
David noted that the Bank is 'widely expected to keep its overnight rate unchanged' due to rising inflation and escalating trade tensions. The Consumer Price Index rose from 2.8% to 3% in July, making a cut unlikely, according to David.
Variable mortgage rates are likely to remain unchanged, but fixed mortgage rates may move in either direction depending on the outcome of the trade war. Currently, there are still some discounted options available below the 4% mark, including a two-year fixed mortgage rate of 3.89%