Bank of Canada Stands Pat on Interest Rates Amid Trade Tensions

The Bank of Canada is preparing 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 economy has been coping with US tariff uncertainty 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 gas prices soared over the spring.

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.