The Bank of Canada's next move

Sep 2, 2026Moment 2 of 7

The Bank holds at 2.25 per cent, again

Moment dated Sep 2, 2026; earliest linked report published Sep 4, 2026.

WHAT HAPPENED

The Bank of Canada kept its policy rate at 2.25 per cent. The rate is its target for overnight loans between banks, which is why it is also called the overnight rate. It steers what households and businesses pay to borrow. The decision belongs to the Governing Council, the group at the Bank that sets the rate. It was the seventh straight decision without a change. The last move was a quarter-point cut, a quarter of a percentage point, in October 2025. The Bank said inflation had hovered around 3 per cent, mainly because of gasoline prices. It said 'the upside risks to inflation have increased', meaning inflation is more likely to overshoot than undershoot. New tariffs, taxes on imports, made growth prospects more uncertain, it added. It said it was 'prepared to adjust monetary policy as needed'. The decision after this one comes October 28, alongside its quarterly forecast, the Monetary Policy Report.

Why this matters

The Bank left the rate where it was and said it was ready to move as needed. It promised nothing about October.

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Policy action Supported by evidence

The Bank of Canada's policy rate stands at 2.25 per cent. On September 2, 2026, the Bank held it there for the seventh consecutive decision. The last change was a quarter-point cut in October 2025. The decision after that is scheduled for October 28, 2026.

What does holding a rate decide? → Stated position Statement documented

The Bank of Canada says products hit by the new US tariffs represent about 5 per cent of Canadian exports to the United States. That was its stated assessment on September 2, 2026. It said the tariffs would hit targeted sectors hard if they stay, but it expected no large direct impact on overall economic activity.

How wide is the tariff hit? → Stated position Statement documented

Governor Tiff Macklem said policymakers were prepared to raise the policy rate more than once if inflation stayed too high. He said it at the September 2, 2026 press conference, according to reports by Reuters and FXStreet, a currency-markets news site. No hike was announced or scheduled.

What does a warning commit a central bank to? → See all 3 claims from this moment →