Canada Watch

The Bank of Canada maintained its policy rate at 2.25% on June 10, 2026, as it grapples with a weakening economy and inflation risks. BofA analysts anticipate the bank will remain on hold at this level through the end of 2026.

Key Takeaways

• 1.The Bank of Canada held the policy rate at 2.25% in its June 10 meeting, reflecting a balance between weak economic activity and persistent inflation risks.
• 2.BofA projects the BoC will keep the policy rate on hold at 2.25% through 2026.

Table of Contents

• Key takeaways
• The BoC held the policy rate at 2.25%
• BoC's forward guidance: "ready to respond as needed"
• Canada faces a dilemma amid uncertainty
• BoC: Hold through 2026 remains our baseline
• Rates: Markets decreasing BoC hikes relative to Fed hikes