The Bank of Canada (BoC) maintained its target for the overnight rate at 2.25% following its scheduled meeting on March 18, 2026. This decision marks the third consecutive time the central bank has held the rate steady at this level.
Key Details of the March Decision
- Current Policy Rate: 2.25%.
- Bank Rate: 2.50%.
- Deposit Rate: 2.20%.
- Economic Context: The decision to hold rates comes as the BoC balances cooling inflation (which fell to 1.8% in February) against new risks, including a global oil price shock caused by the U.S.-Iran war and ongoing trade uncertainty.
- Guidance: The Governing Council noted that while the current rate is appropriate, "elevated uncertainty" makes the timing and direction of the next move difficult to predict.
2026 Rate Announcement Schedule
The Bank of Canada reviews interest rates eight times a year. The remaining dates for 2026 are:
- Wednesday, April 29 (includes Monetary Policy Report)
- Wednesday, June 10
- Wednesday, July 15 (includes Monetary Policy Report)
- Wednesday, September 2
- Wednesday, October 28 (includes Monetary Policy Report)
- Wednesday, December 9
Major Canadian banks, including RBC, CIBC, and TD, generally forecast that the policy rate will remain at 2.25% through the end of 2026, though some analysts suggest potential hikes in 2027 if economic conditions strengthen.
Would you like to see a comparison of how different major banks forecast the rate path for the remainder of the year?
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