Bank of Canada holds rate at 2¼%, flags tighter financial conditions ahead of Oct. 28 decision
Long-term bond yields have moved up globally since July, the Bank says, even as it describes the financial system as having functioned well through a difficult year.
The Bank of Canada held its policy rate at 2¼% at its September 2 decision, with the next scheduled announcement set for October 28.
In remarks since the decision, the Bank has flagged that financial conditions have tightened since July, with long-term bond yields moving higher globally, Canada included — a dynamic that complicates the read on where policy goes next.
Senior Deputy Governor Carolyn Rogers addressed the Greater Victoria Chamber of Commerce and CFA Society Victoria on October 1, as the Bank continues its public messaging that Canada's financial system has functioned well through a challenging year, with households, businesses and banks maintaining stable financial conditions and capacity to absorb shocks.
That assessment comes against a backdrop of rising mortgage stress, elevated household debt, and housing affordability pressure that the Bank and outside analysts alike have flagged as a complex, multi-front test for Canada's banking sector heading into the fall decision.
Source: Bank of Canada (https://www.bankofcanada.ca/2026/09/fad-press-release-2026-09-02/)