The Bank of Canada is expected to make an interest rate announcement Wednesday, with many economists predicting a hike for the first time in three years.
The central bank is facing pressure to raise interest rates as the Iran war and other geopolitical conflicts result in higher prices for oil and gas, which is expected to lead to higher prices for goods and services beyond the gas pump.
Get daily National news
Get daily Canada news delivered to your inbox so you’ll never miss the day’s top stories.
Financial markets and a Reuters poll of economists are betting that the central bank will deliver a quarter-point hike to its policy rate, the first increase in the key lending rate since July 2023.
The floor for borrowing rates set by the Bank of Canada has been 2.25 per cent since October 2025, when rates were cut from 2.5 per cent.
Alongside the rate decision, the Bank of Canada will also release updated forecasts for inflation and economic growth.
– with a file from The Canadian Press
More to come.
