Governor of the Bank of Canada Tiff Macklem listens to questions during a news conference following an interest rate announcement, at the Bank of Canada in Ottawa, on Wednesday, Dec. 10, 2025. THE CANADIAN PRESS/Justin Tang

By The Canadian Press

Bank of Canada to make interest rate announcement amid clouded outlook

Mar 18, 2026 | 2:00 AM

OTTAWA — The Bank of Canada is expected to make an interest rate announcement this morning as it weighs the effects of the conflict in the Middle East, trade uncertainty and recent economic data.

The central bank’s key lending rate stands at 2.25 per cent after a hold in January, but the economic landscape has shifted since that decision.

A Reuters poll shows economists widely expect the bank to maintain its current policy rate.

Economists say the central bank faces choppy waters in setting monetary policy this year amid ongoing inflation risks from a global oil price shock due to the U.S.-Israeli war on Iran and uncertainties stemming from the upcoming review of the North American trade deal.

Factoring into the central bank’s decision will also be annual inflation figures for February that came in slightly lower than expected at 1.8 per cent, helped by the end of last year’s tax holiday in mid-February 2025.

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The Bank of Canada will also consider Friday’s jobs release, which showed the unemployment rate rose to 6.7 per cent after the economy lost 84,000 jobs in February.

This report by The Canadian Press was first published March 18, 2026.

The Canadian Press