Bank of Canada Keeps Interest Rate Steady Amid Trade Uncertainty

The Bank of Canada held its target interest rate at 2.25% in September 2026, citing recent economic growth and uncertainty about the sustainability of the rebound.

Monetary policy makers assessed the evolving risks to the outlook, including ongoing conflict in the Middle East and new US tariffs on Canadian exports.

According to Governor Tiff Macklem, uncertainty about the rebound's sustainability has increased due to new US trade actions. He also noted that the continuing conflict in the Middle East is keeping energy prices high for longer and increasing upside risks to inflation.