Bank of Canada Held Its Policy Rate at 2.25 Per Cent in September

This report by Editorial team is based on information published by Bank of Canada.

According to the Bank of Canada, the target for the overnight rate was held at 2.25 per cent on September 2, 2026. The Bank Rate was set at 2.5 per cent and the deposit rate at 2.20 per cent. The next scheduled announcement is October 28, 2026, when the Bank will also publish its Monetary Policy Report.

The Bank said the Canadian economy and inflation had evolved broadly in line with its July forecast. At the same time, it warned that upside risks to inflation had increased, while new tariffs made the growth outlook more uncertain. Its governing council said it would judge whether the economic rebound is sustainable and how inflation develops, and that it is prepared to adjust policy if conditions require it.

Two pressures pulling in different directions

One pressure comes from energy and trade. The Bank pointed to a continuing Middle East conflict keeping energy prices high. It also pointed to new United States tariffs and Canadian counter-measures after trade talks broke down. Those forces can raise prices while also weakening demand, which is the difficult combination central banks must separate into temporary price effects and lasting inflation.

The other pressure is domestic steadiness. Growth had picked up after a period in which the economy stalled, and recent information was largely consistent with the July outlook. That steadiness gave the Bank room to wait rather than move immediately. Waiting, however, is not a promise about October: the next report will update the forecast and test whether the rebound and price path still look the same.

What households and businesses should watch

For mortgage holders, a held policy rate does not by itself change a payment. Fixed mortgage rates respond to bond markets and lender pricing, while variable rates are more directly linked to the policy rate through lenders. Small businesses face the same split: operating lines and variable loans react differently from fixed-term borrowing.

Toronto Daily is reporting the September decision as background for the October 28 announcement, not as a forecast. The official Bank page linked below is the source for the current rate setting and the next decision date.