Bank of Canada to hold rates steady in 2026 as inflation risks appear contained: Reuters poll

Bank of Canada to hold rates steady in 2026 as inflation risks appear contained: a Reuters poll indicates the central bank will keep its overnight rate at 2.25% on July 15 and maintain that level well into next year. Inflation rose to 3.2% in May, briefly breaching the 1%-3% target range for the first time since December 2023, but price pressures are expected to cool. The poll’s 36 economists, surveyed July 7-10, unanimously forecast no change next week; 19 of 30 expect rates to stay unchanged until at least July 2027. The economy is recovering from a technical recession supported by higher oil prices and improving labor-market signals. Key risks include possible shifts in energy prices, inflation expectations, or unemployment, while median forecasts call for 2.6% inflation in 2026 and growth averaging 1.8% in 2027.