News

The Bank of Canada today held its target for the overnight rate at 2.25%, with the Bank Rate at 2.5% and the deposit rate at 2.20%.

The Canadian economy is expected to grow at a moderate pace as it continues to adjust to US tariffs. Inflation has moved up due to higher oil prices linked to the war in the Middle East. It is projected to then ease back to the 2% target in 2027.

Governor Tiff Macklem discusses the Monetary Policy Report and the key issues involved in the Governing Council’s deliberations about the monetary policy decision.

The Board of Directors of the Bank of Canada today announced the appointment of Marc-André Gosselin and Nicolas Vincent as Deputy Governors, effective May 25 and August 3, 2026, respectively.

Results from the Business Outlook Survey and the Business Leaders’ Pulse indicate that firms’ sentiment has improved. Responses were mostly gathered before the start of the war in the Middle East. Fewer businesses reported being affected by trade tensions with the United States, and many expect sales growth to improve. Most businesses plan to maintain or slightly increase current staffing levels and investment spending. One-year-ahead inflation expectations have ticked up slightly. Results of follow-up calls made after the start of Iran war suggest that many firms are already facing higher input costs related to the war due to rising prices for energy, fertilizer and freight.