The Bank of Canada announced on Wednesday, March 18, 2026, that it is holding its target for the overnight rate at 4.75%. The decision was widely anticipated by financial markets and marks a continued pause in the central bank's monetary policy tightening cycle.
In its accompanying statement, the Governing Council cited a complex global economic environment. While inflation in Canada continues to ease, the Bank noted that risks remain, including persistent geopolitical tensions in the Middle East. These tensions have contributed to volatility in global oil prices, which remain elevated compared to recent years, posing a risk to the inflation outlook.
The Bank stated that it is continuing its policy of quantitative tightening. It reiterated that future decisions on the policy rate will be based on incoming data and the evolving assessment of risks. The next scheduled interest rate announcement is set for April 15, 2026.
Separately, the federal government has confirmed it will table its spring fiscal update in the coming weeks. Finance Minister Chrystia Freeland is expected to outline the government's updated economic projections and fiscal plan in light of the current global headwinds.
