Bank of Canada Set for Sixth Interest Rate Decision Amid Ongoing Economic Uncertainty

The Bank of Canada is set to make its sixth interest rate decision of the year on September 2, 2026. Most economists and financial markets expect the central bank to hold its policy rate steady at 2.25 per cent. The decision comes as the economy continues to cope with uncertainty caused by U.S. tariffs and higher global energy prices due to the war in Iran.

Annual inflation rose to three per cent in July, but the consumer price index has been volatile since the Middle East conflict sent gas prices soaring over the spring. Despite this volatility, the economy and labour market are showing signs of rebounding as Canada heads into a re-escalating trade war with the United States.

An ongoing strike among the Bank of Canada's security officers is preventing the central bank from holding its customary lockup with journalists before releasing the rate decision. This will be the sixth time this year that the Bank of Canada has held its policy rate steady at 2.25 per cent, a level it has maintained since late last year.