Bank of Canada Pauses Monetary Policy Amid Weakening Growth

The Bank of Canada has paused its monetary policy, leaving interest rates at 2.25% as it navigates a complex economic landscape.

This decision comes amidst a weak growth environment, with GDP contracting in the first quarter of 2026, and persistent excess supply.

The Bank's assessment is that the current rate is appropriately calibrated to balance competing forces within the economy, including inflation dynamics where headline inflation has been temporarily elevated by energy prices while underlying core measures remain contained at around 2.3%.