Bank of Canada Holds Rate at 2.25% for Sixth Consecutive Meeting, Removes Rate-Hike Warning on July 15

The Bank of Canada held its benchmark overnight rate at 2.25% on Wednesday, July 15, marking the sixth consecutive pause, as expected by markets. The central bank removed prior guidance warning of potential consecutive rate hikes, signaling a shift toward a more neutral stance.

Economic conditions have improved following weak performance in early 2026. The BoC projects Q2 growth at 2.5% annualized and Q3 growth at 1.5%, with Governor Tiff Macklem stating that growth appears to have resumed after stagnation over the past year. Despite U.S. trade policy headwinds, consumers showed resilience and businesses adapted to new conditions. The central bank sees current rates as appropriate and has no immediate urgency to adjust borrowing costs.