---
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 (MPR) - Press Release
indicators_covered: [Overnight Rate Target, Bank Rate, Deposit Rate]
---

# Bank of Canada Press Release — April 29, 2026

The Bank of Canada today announced that it is maintaining its target for the overnight rate at **2.25%**. The Bank Rate is correspondingly **2.5%**.

## Context

The global economic outlook remains broadly unchanged from January, with strong, sustainable growth still expected. Energy prices have increased significantly since the January MPR due to geopolitical events. Higher oil prices boost incomes in exporting nations while squeezing consumers in oil-importing countries. Canada is a net oil exporter, so higher prices support national income even as consumers face higher gasoline costs.

Inflation developments show CPI inflation rose to 2.4% in March, driven by sharply higher gasoline prices after several months of slowing inflation. Core inflation remains at just above 2%. The share of CPI components with price increases above 3% has declined. So far, there is little evidence that higher oil prices have broadened into wider inflation, but this will be monitored closely. Short-term inflation expectations have risen with gasoline and still-elevated food prices, while longer-term expectations continue to be well-anchored.

CPI inflation is expected to rise further in April to about 3%. Assuming oil prices ease, inflation is projected to return to the 2% target early next year and remain around 2% over the projection horizon.

## Decision

Taking into account the current projection, Governing Council decided to maintain the policy rate at 2.25%. The Bank is closely monitoring the impact of Middle East hostilities and US tariffs/trade policy uncertainty. Governing Council is looking through the war's immediate inflation impact but will not tolerate persistently higher energy prices. The Bank stands ready to act as the outlook evolves and remains committed to maintaining Canadians' confidence in price stability during this period of global upheaval.

## Information Note

The next scheduled date for announcing the overnight rate target is **June 10, 2026**. The next Monetary Policy Report (MPR) will be released on **July 15, 2026**.