The Bank of Canada’s decision to hold its overnight rate steady at 2.25% through six consecutive meetings in 2026, most recently on July 15, reflects subdued economic growth and the central bank’s assessment that recent inflation pressures remain transitory. Headline CPI rose to 3.0% in July from 2.8% in June, driven largely by energy prices tied to Middle East geopolitical tensions, while core measures stayed near 2%. Policymakers continue to project GDP growth accelerating modestly later in the year before easing, with inflation converging toward the 2% target by 2027. Market-implied odds of 73.5% against a 2026 hike align with analyst forecasts expecting the policy rate to remain unchanged through year-end, absent broader pass-through of energy costs or stronger-than-expected demand. The next key catalyst is the September 2 announcement.