Bank of Canada holds rates, sees economic growth in second half

By Promit Mukherjee

Wed, July 15, 2026 astatine 8:48 AM CDT 1 min read

By Promit Mukherjee

OTTAWA, July 15 (Reuters) - The Bank of Canada near its benchmark ‌overnight complaint unchanged astatine 2.25% connected ‌Wednesday arsenic wide expected and said maturation would fortify ​in the 2nd fractional of the twelvemonth arsenic ostentation pressures eased.

The determination marked the sixth clip successful a enactment that the cardinal ‌bank has kept ⁠its cardinal argumentation complaint unchanged aft an assertive easing rhythm past ⁠year that brought the complaint down to the existent level successful October.

"Canada's system is showing ​signs of ​improvement. Growth is ​picking up and ‌inflation is projected to easiness gradually from its caller spike," the slope said successful its statement.

The slope somewhat raised its maturation forecasts for 2027 and 2028 but chopped its ‌2026 projection to 0.7% ​from 1.2% successful April, reflecting ​a weaker ​start to the year.

The BoC raised ‌its 2026 ostentation forecast ​to 2.5% ​from 2.3% successful April, but said ostentation should stay adjacent the midpoint of ​its 1%-3% ‌target scope implicit the adjacent 2 years.

(Reporting ​by Promit Mukherjee; Editing by Aurora ​Ellis and David Ljunggren)