The Bank of Canada’s decision to hold its policy rate at 2.25% through seven consecutive meetings in 2026, most recently on September 2, reflects a policy stance balancing fragile growth against elevated inflation risks. Headline CPI remained at 3.0% year-over-year in August, driven by energy prices that are 15-23% higher than a year earlier amid ongoing Middle East conflict, while core measures stayed near the 2% target. Recent Governing Council minutes highlighted increased upside risks from potential spillovers into broader prices and U.S. tariffs, with officials signaling readiness for rate hikes if inflation broadens. Market-implied odds of 70% for at least one hike by year-end incorporate these pressures ahead of the October 28 and December 9 decisions, though most economist forecasts still anticipate holds through 2026 with tightening delayed into 2027.