According to the Bank of Canada, the Governing Council held its target for the overnight rate at 2,25% on 15 July 2026, with the Bank Rate at 2,50% and the deposit rate at 2,20%. The decision, published alongside the quarterly Monetary Policy Report, extends a hold that has now lasted for a sixth consecutive announcement. The Bank confirmed that the next scheduled rate decision falls on 2 September 2026, with a fresh Monetary Policy Report due on 28 October 2026.
The central bank said Canada's economy has been weak but is showing signs of improvement, with growth expected to pick up and inflation projected to ease to around 2%, though uncertainty remains elevated. Consumer price inflation rose to 3,2% in May, mainly because of higher gasoline prices linked to the war in the Middle East, while GDP growth for 2026 as a whole is projected at 0,7%, rising to 1,8% in both 2027 and 2028.
For the construction pipeline, the Bank of Canada stated that "housing activity has been weak but looks to be stabilizing." The accompanying Monetary Policy Report projected that residential investment growth is expected to increase over the projection horizon, although it remains restrained by slow population growth and affordability challenges in some regions.
With the overnight rate unchanged, the bank prime rate also stays at 4,45%, a lag indicator that feeds directly into variable mortgage pricing and construction financing costs across Canada.