Bank of Canada Expected to Hold Rates Steady in July

The Bank of Canada is expected to keep its benchmark overnight rate unchanged at its July 15 policy announcement, extending a pause as officials assess the balance between cooling price pressures and signs of slower economic growth. A hold would reflect a cautious approach after earlier moves to tighten monetary policy, with policymakers looking for clearer evidence that inflation is moving sustainably toward target.

Economists will be watching the central bank's statement for any shift in tone on household spending, labor market conditions and the outlook for borrowing costs later this year. While some analysts see room for cuts later in 2026 if inflation continues to ease, the July decision is widely expected to keep policy settings steady as the bank waits for more data before making its next move.