The Bank of Canada held the policy rate at 2.25% this week — the third hold of the year. CPI moved up to 2.4% in March, mostly because oil prices rose. So far, the Bank says that has not pushed up the price of the other things people buy day to day.
| Indicator | Reading | Note |
|---|---|---|
| Policy Rate | 2.25% | Held · 3rd of 2026 |
| March CPI | 2.4% | Up from 1.8% in Feb |
| Next Decision | June 10 | Bank of Canada |
Holds are the easiest condition to operate in
From a private lender’s seat, holds are the easiest condition to operate in. Cuts force you to reprice. Hikes force you to reposition. Holds let the existing book breathe and the underwriting team plan against the assumptions they already had.
“Holds let the existing book breathe and the underwriting team plan against the assumptions they already had.”
Colin Ernst, Co-FounderHow we’ve been pricing
We’ve been pricing on the view that the policy rate stays in this neighbourhood for a while yet. Wednesday’s decision confirms that view, for now. That’s not a bold call — it’s a read on what the Bank has already said it’s watching. The oil story and the trade picture are the two things that could move it.
What comes next
The next scheduled decision is June 10. We’ll see where the oil story sits by then. In the meantime, the book is in good shape and the assumptions we’ve been underwriting against remain intact.
Source: CBC News, April 29, 2026 — Bank of Canada holds key interest rate at 2.25%