Key facts
- Canada's budget watchdog projects the Bank of Canada will hold rates steady through 2026.
- The watchdog forecasts a rate hike to 2.75% by the end of 2027.
- This projection is part of the watchdog's new economic outlook.
Canada's budget watchdog has released a new economic outlook that includes projections for the Bank of Canada's monetary policy. According to the outlook, the watchdog anticipates that the Bank of Canada will maintain its current key interest rate through the entirety of 2026. Following this period of stability, the projection indicates a gradual increase in the interest rate, reaching a level of 2.75 per cent by the conclusion of 2027. This forecast provides insight into the potential future path of Canadian monetary policy as assessed by the independent budget watchdog.