FX.co ★ BoC Leaves Rates Steady, Stands Ready to Raise if Needed

The Bank of Canada left its benchmark overnight rate unchanged at 2.25% in June 2026, in line with expectations. The central bank is continuing to look through the war’s short-term impact on headline inflation, but emphasized that it will not allow higher energy prices to become a source of persistent inflation and stands ready to respond if necessary. Policymakers also noted that economic activity in Canada remains weak and that uncertainty surrounding US trade policy persists, while the conflict in the Middle East continues and oil prices remain elevated.