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2026-07-15 21:50:15
[Bank of Canada Holds Rates Steady for Sixth Consecutive Month, Raises 2026 Inflation Forecast to 2.5%, Expects Second-Half Growth to Rebound] ⑴ As expected, the Bank of Canada kept its benchmark overnight rate unchanged at 2.25% on Wednesday. This marks the sixth consecutive month without a rate cut since ending its aggressive easing cycle last October, indicating the central bank's satisfaction with its current policy stance. ⑵ In its statement, the central bank said the Canadian economy is showing signs of improvement, growth is picking up, and inflation is expected to gradually moderate from its recent surge. It also slightly raised its growth forecasts for 2027 and 2028. ⑶ Due to a weak start to the year, the central bank lowered its 2026 economic growth forecast to 0.7% from 1.2% in April, but expects growth to strengthen in the second half of the year, consistent with the statement's assessment of economic improvement. ⑷ Regarding inflation, the central bank raised its 2026 inflation forecast to 2.5% from 2.3%, but believes inflation should remain near the midpoint of its 1% to 3% target range over the next two years, indicating continued confidence in medium-term price stability.
