Bank of Canada mulls Trump tariff shock as it readies interest rates decision

Ottawa — The Bank of Canada is scheduled to announce its sixth interest rate decision of the year today. Economic experts and market analysts are predicting a rate hold from the central bank. Since late last year, the Bank of Canada has maintained its policy rate at 2.25 per cent as the economy navigates U.S. tariff uncertainty and higher global energy costs resulting from the Iran war.

In July, annual inflation climbed to three per cent; however, the consumer price index has fluctuated since the Middle East conflict drove gas prices up in the spring. Economic activity and the labour market are demonstrating signs of recovery as Canada prepares for another possible trade conflict with the United States. Meanwhile, a strike involving the Bank of Canada's security staff continues to hinder the central bank from holding its regular meeting with journalists prior to disclosing the rate decision. This report by The Canadian Press was originally published on September 2, 2026.