Bank of Canada Maintains Policy Rate at 2.25 Percent, Says Higher Energy Prices May Lead to ‘Consecutive’ Rate Increases

Bank of Canada Governor Tiff Macklem is seen during a news conference in Ottawa, on March 18, 2026. The Canadian Press/Adrian Wyld

OTTAWA—The Bank of Canada has once again kept its key interest rate steady at 2.25 percent, but warned that economic weakness combined with higher inflation poses a “dilemma” for monetary policy.

“Raising rates to dampen inflation could further slow the economy. Easing rates to support growth increases the risk that higher inflation becomes persistent. For now, holding the policy rate unchanged balances those risks,” Bank of Canada Governor Tiff Macklem told reporters on June 10.