---
source: Bank of Canada
url: https://www.bankofcanada.ca/2026/04/fad-press-release-2026-04-29/
document_type: html
date_retrieved: 2026-04-29
period: April 2026
parent_publication: Monetary Policy Report and Interest Rate Announcement
indicators_covered: [Overnight Rate]
---

# Monetary Policy Report and Interest Rate Announcement — April 2026

Governing Council decided to maintain the policy rate at **2.25%**.

The Bank continues to expect inflation to return to the 2% target around the middle of 2026. Recent data suggest that the economy is returning to a more balanced state, but underlying inflationary pressures remain elevated. The Bank is closely monitoring the impact of the conflict in the Middle East and how the economy is responding to US tariffs and trade policy uncertainty. Governing Council is looking through the war's immediate impact on inflation but will not let higher energy prices become persistent inflation. As the outlook evolves, the Bank stands ready to respond as needed. The Bank is committed to maintaining Canadians' confidence in price stability through this period of global upheaval.

**Inflation:** CPI inflation climbed to 2.4% in March because of sharply higher gasoline prices. Core inflation has been easing and held steady at just above 2% in the most recent inflation report. Near-term inflation expectations have moved up with higher gasoline prices and still-elevated food price inflation, but longer-term inflation expectations have remained anchored. CPI inflation will likely rise further in April to about 3%. Based on the assumption that oil prices will ease, inflation is forecast to come down to the 2% target early next year and remain around 2% over the projection horizon.

**Information note:** The next scheduled date for announcing the overnight rate target is June 10, 2026. The Bank's next MPR will be released on July 15, 2026.