Bank of Canada maintains interest rate at two point two five percent through the end of next year

The Bank of Canada held its overnight rate at 2.25 percent. A strong majority of economists now expect a prolonged pause in policy through the year 2026.

Insights:
The Bank of Canada CACAhas announced its decision to hold its overnight interest rate at 2.25 percent for the January 28, 2026, meeting, a move that signals a multi-year pause in monetary policy. According to a Reuters poll conducted from January 20 to January 23, all 35 participating economists predicted the central bank would maintain this rate. The survey also found that 26 of 35 respondents, or 74 percent, now expect the rate to remain unchanged through the end of 2026, up from just over 60 percent in December. CIBC Capital Markets and RBC were identified as being among the most accurate forecasters for the Canadian economyin Reuters polling last year.
A view of the Bank of Canada building in Ottawa, Ontario, Canada, on December 11, 2024. REUTERS/Blair Gable
A view of the Bank of Canada building in Ottawa, Ontario, Canada, on December 11, 2024. REUTERS/Blair Gable
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