Bank of Canada Holds Interest Rates Steady as Inflation Moves Higher

The Bank of Canada has elected to keep interest rates at current levels amid signs that inflation is moving higher across the country.

Canada’s central bank announced on April 29 that it is is holding its trendsetting policy interest rate at 2.25%, the fourth consecutive time it has left interest rates unchanged. The move was widely expected with financial markets placing the odds of another rate hold at 93%.

In addition to standing pat on interest rates, the Bank of Canada revised its inflation outlook saying that it now projects that inflation will peak at around 3% in April of this year, before declining to the central bank’s 2% annualized target in early 2027.