Bank of Canada Holds Rate at 2.25 Percent Amid Trade War Uncertainty

The Bank of Canada is expected to hold its overnight rate at 2.25 percent on September 2, 2026, according to Jamie David, vice-president of mortgages at Ratehub.ca.

David notes that the central bank is currently in a bind due to escalating trade tensions threatening to slow economic growth while inflationary pressures weigh against any easing.

The recent consumer price index (CPI) reading, which rose 3 percent year-over-year in July, matches the top of the Bank of Canada's 1-3 percent target range, giving policymakers little reason to consider a rate cut.