The Bank of Canada decided to keep its target for the overnight rate at 2,25%. This happened on September 2, 2026, in Ottawa.
Governor Tiff Macklem noted in his opening remarks that data since July have been broadly in line with the July projection. The economy has shown growth: GDP expanded by 3,3% in the second quarter after a weak first quarter.
Unemployment fell to 6,4% in July, and the private sector hired more workers. Consumer spending remained resilient, and housing activity picked up somewhat.
However, new U.S. tariffs on Canadian exports and Canada's countermeasures have added uncertainty. The conflict in the Middle East, particularly in Iran, continues to keep energy prices elevated.
Inflation remains around 3%, largely due to gasoline. Excluding fuel, it was 2,2% in July, and core measures are close to the 2% target.
Can the Bank of Canada fully neutralize the impact of global events on domestic prices? The Bank emphasizes its commitment to the 2% inflation target and stands ready to adjust policy as needed.
The Governing Council will closely monitor the sustainability of the economic recovery and inflation dynamics. The Bank aims to provide stability for Canadians amid global changes.
