All articles tagged with #rate decision
The Bank of Canada left its overnight rate at 2.25% in January 2026, saying the global and Canadian outlook is little changed since October. Inflation remains near the 2% target, growth is expected to be modest due to slower population growth and US protectionism, and GDP projections for 2026–27 were trimmed modestly. The statement reaffirmed that the current policy rate remains appropriate, with a readiness to respond if conditions shift.
A potential government shutdown could hinder the Federal Reserve's ability to raise interest rates in November, as it would limit access to key inflation data from unfunded agencies such as the departments of Labor and Commerce. Bank of America suggests that if the shutdown lasts for a month or more, the Fed would be "flying blind" at its November meeting and may need to stay on hold. While markets already believe the Fed is done with rate hikes, Bank of America expects one more hike, contingent on the duration of the shutdown and inflation trends.
European Central Bank President Christine Lagarde is set to speak after the bank's decision to raise rates by a quarter percentage point, bringing the main rate to 3.75%. The ECB stated that inflation is expected to remain high for an extended period.