Bank of Canada set to keep key lending rate steady

Bank of Canada expected to keep benchmark rate at 2.25% amid Iran war oil price spike
Bank of Canada set to keep key lending rate steady
People make their way past the Bank of Canada building in downtown Ottawa on Tuesday, April 28, 2026.
THE CANADIAN PRESS/Sean Kilpatrick
Writer

The Bank of Canada is widely expected to keep its benchmark interest rate unchanged at 2.25 per cent when it announces its latest decision later this morning. 

The central bank is also set to release its latest economic forecast in its quarterly monetary policy report. 

The bank has been grappling with a confluence of factors that have clouded the outlook for inflation and the economy. 

Heading into the year, many economists had predicted inflation would ease and a softer economy would keep the Bank of Canada on the sidelines while it waited for clarity on the U.S. trade front. 

But the outbreak of war in the Middle East in late February has led to a surge in oil prices and upended inflation forecasts. 

Bank of Canada governor Tiff Macklem has said the governing council will "look through" the initial spike in inflation — now at 2.4 per cent as of March — driven by the oil price shock but will also ensure those inflationary pressures don't become entrenched. 

This report by The Canadian Press was first published April 29, 2026.

Copyright 2026, The Canadian Press. All rights reserved.

CanadaNews
  • The Canadian Press

    The Canadian Press is Canada's trusted news source and leader in providing real-time, bilingual multimedia stories across print, broadcast and digital platforms. From breaking regional, national and international stories to the biggest events in politics, business, entertainment and lifestyle, The Canadian Press is there when it matters, giving Canadians an authentic, unbiased source, driven by truth, accuracy and timeliness.

These government benefits have payment dates in May and some offer more than $500

You could get a lot of money!

These grocery stores in Canada have the lowest prices, according to Canadian shoppers

"Where they're cheap on one item, they're expensive on another."

OPP officer dead after crash in Cobourg: police

OPP officer dead after crash on Highway 401 in Cobourg: police

Your federal benefit payments could be delayed or stopped soon and here's why

These benefits offer thousands of dollars.

Canada's best employers were ranked and these are the top places to 'grow your career'

Where you work can make a difference in how you work, according to LinkedIn.

This is how a sovereign wealth fund works

Canada is getting a sovereign wealth fund. What does that mean and how do they work?

Lotto Max winner bought a ticket at the grocery store and won $1 million

She put the lottery ticket in her purse and forgot about it!

Ontario's May weather forecast reveals which days will be sunny and warm

The month will be cooler than normal but warm temperatures are still in the forecast.

8 things I learned while trying to rent a Toronto apartment that everyone should know

Learn from my mistakes!

Liberals outline key priorities in economic update

Liberals table first fiscal document in seven years that won't need opposition votes