Bank of Canada Expected to Keep Key Rate Steady This Week—and Maybe All Year Long Economists anticipate no changes to the Bank of Canada’s benchmark interest rate this week and potentially for the remainder of 2026. Financial markets indicate a high probability of a rate hold, reflecting the central bank’s previous decision to keep the policy rate steady at 2.25 percent in December. Governor Tiff Macklem indicated that current monetary policy is considered appropriate for balancing the economy and inflation.

• Economists expect no change in the Bank of Canada’s benchmark interest rate this week.
• Market odds favor a rate hold at nearly 89 percent for the upcoming decision.
• The Bank of Canada maintained its policy rate at 2.25 percent in December.
• This follows two quarter-point cuts in the latter half of 2025.
• Governor Tiff Macklem believes current monetary policy is at a suitable level.