Bank of Canada Holds Rate at 2.25% for a Sixth Straight Decision

The Bank of Canada left its target for the overnight rate unchanged at 2.25% in its July 2026 decision — the sixth consecutive meeting without a move, extending a holding pattern that has now lasted several months.

Why the Bank keeps holding

Central banks typically pause once they judge policy is roughly balanced between controlling inflation and avoiding unnecessary damage to growth and employment. A run of six unchanged decisions suggests the Bank of Canada currently sees 2.25% as close to that balance point, watching incoming data rather than actively steering the rate in either direction for now.

What it means for borrowers

A held rate means variable-rate mortgage and loan payments tied to the Bank's overnight rate stay where they are for now — no fresh relief, but also no fresh squeeze. Anyone with a mortgage renewal coming up can plan around a broadly stable rate environment rather than a moving target, at least until the next scheduled announcement.

What comes next

The Bank's next scheduled rate announcement is 2 September 2026. Markets are currently pricing the policy rate to stay around 2.25% through into 2027, though that expectation can shift quickly if inflation or employment data surprises in either direction before then.