BoC Leaves Rates Steady, Stands Ready to Raise if Needed

2026-06-10 13:49 By Joana Taborda 1 min. read

The Bank of Canada left the target for its benchmark overnight rate steady at 2.25% for a fifth consecutive meeting in June 2026, in line with expectations.

Policymakers said that so far, there has been limited evidence of broad-based pass-through of higher energy prices to other consumer prices.

However, the central bank is continuing to look through the war’s near-term impact on inflation and will not let higher energy prices become persistent inflation, standing ready to respond as needed.

Inflation in Canada rose to 2.8% in April mostly due to energy prices, but the core rate moved down to 2.1%.

The central bank expects inflation to hover around 3% before gradually easing towards the 2% target.

Policymakers also noted that economic activity in Canada has been weak and uncertainty about US trade policy persists.

The Bank Rate and the deposit rate were also kept at 2.5% and 2.20% respectively.



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BoC Leaves Rates Steady, Stands Ready to Raise if Needed
The Bank of Canada left the target for its benchmark overnight rate steady at 2.25% for a fifth consecutive meeting in June 2026, in line with expectations. Policymakers said that so far, there has been limited evidence of broad-based pass-through of higher energy prices to other consumer prices. However, the central bank is continuing to look through the war’s near-term impact on inflation and will not let higher energy prices become persistent inflation, standing ready to respond as needed. Inflation in Canada rose to 2.8% in April mostly due to energy prices, but the core rate moved down to 2.1%. The central bank expects inflation to hover around 3% before gradually easing towards the 2% target. Policymakers also noted that economic activity in Canada has been weak and uncertainty about US trade policy persists. The Bank Rate and the deposit rate were also kept at 2.5% and 2.20% respectively.
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